When you send a lot of ETH or USDT to a big exchange like Kraken, do they care if its come from a smaller non kyc exchange like Blofin? Do they care if it came from a bridge?
They care that’s why they are regulated and implement KYC to all their customers. You should use decentralized exchange if you don’t want any check like this.
@omegastarscream said above is correct so don’t risk your money if you knew that your funds came from shady origin/tainted.
I’m not sure what exchange Biofin is but it’s safe to avoid all CEX.
I use a lot of DEX but at some point need to get it back to fiat to send to my bank. My funds arent shady but I do have a wallet that used a mixer one time. Are all my wallets connected to that wallet considered tainted? Thats why I am sending to smaller cex and bridges be
It is not about if the coins are too much but even if it is a small amount of money, the exchanges still have tools that track the coin past transactions. Make sure your coins is not linked with something illegal. There is nothing to be worried about if you are doing nothing wrong or illegal.
How can they trace the funds to the source before the smaller exchange or the bridge? A wallet funded from mexc just shows mexc as origin right? Not previous hops?
They have tools for it which their blockchain analysts can use for the tracking.
How can they track it to before the small cex? The small cex has pooled funds in a wallet they all send to and from.