Hi all,
Sorry for the confusing title. I'll try to explain:
What if I buy some KYC Bitcoin through an exchange and then move it to a wallet. And then, let's say I either give some of that Bitcoin to someone else (maybe a charity or a friend), or use it to buy something (maybe a used car off Craigslist). At this point, from my perspective, I no longer own that Bitcoin (i.e. it is "beyond my ownership"). But now what if the person who now "owns" that Bitcoin uses it for some illegal purpose? I would have no knowledge of that transaction, but my KYC has "propagated" to the new owner. If that transaction were to be traced, assuming it hadn't been linked with KYC transactions with the new owner's identity, I would be still be the last owner of the transaction from a chain analysis perspective, right? This is not something I've heard discussed before (but admittedly I'm new hear). Seems like a risk.
Thoughts?
Thanks.
This is same with with tainted fiat money on bank. You will be subject for investigation but with right proof or documentation on how you spend Bitcoin then you will be off the hook on the analysis chain of transaction. I don’t believe on tainted Bitcoin especially if the original coins is already splitted in smaller parts and use in different timeframe that will for sending to different ownership.
I think the person who directly send the Bitcoin to the culprit will be the main subject of investigation because most Bitcoin might be come to the hands of illegal transaction since Bitcoin was used on dark web marketplace payment during the early days.