Post
Topic
Board Wallet software
Merits 1 from 1 user
Re: Announcing Wasabi Wallet 2.0
by
Pmalek
on 17/06/2022, 08:13:42 UTC
⭐ Merited by n0nce (1)
Just to make sure: compared to exchanges, which may freeze 'tainted' coins (after you sent them), does Wasabi CoinJoin also freeze blacklisted UTXOs or does it 'just not accept them into a CoinJoin' (so you still have the option to move them to Bisq or wherever)?
I don't think they will freeze the coins in the sense that they will take them from you. They will just restrict you from taking part in the coinjoins with that set of tainted UTXOs. That's how I understand the below explanation they made:

Quote
zkSNACKs Ltd. may execute illicit activity checking and control via a contracted third party solely in its coinjoin coordination services. zkSNACKs Ltd. may suspend your UTXOs’ access to the coinjoin services, with immediate effect for any reason - including but not limited to illicit or prohibited activities, applicable sanctions programs, or any crime or money-laundering activity - at its sole discretion and is under no obligation to disclose the details of its decision to take such action with you. In this case you are not permitted to use the relevant/high-risk bitcoin UTXO to reach the coinjoin services.

You acknowledge that zkSNACKs Ltd.'s decision to take certain actions, including suspending for any reason at our sole discretion, may be based on confidential criteria that are essential to zkSNACKs Ltd.'s risk management and security protocols. You agree that zkSNACKs Ltd. is under no obligation to disclose the details of its risk management and security procedures to you.

Your access with the relevant bitcoin UTXOs to the coinjoin services will be permanently suspended.
https://github.com/zkSNACKs/WalletWasabi/blob/master/WalletWasabi/Legal/Assets/LegalDocumentsWw2.txt

I guess that still doesn't mean that those UTXOs would also be blacklisted on centralized exchanges, but the chances of that happening are surely greater. Each CEX can have their own algorithms and methods to determine what is taint to them. That's why all this nonsense is so dangerous. Depositing to one CEX might get your coins and account frozen, but doing the same on a different CEX might work without any problems. The simplest solution, don't use any of them.