$7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved

Post by arcticfox » Wed, Apr 14, 2021, 7:27 PM UTC

liorn wrote: post #16

nknealk wrote: post #8

Here’s an interesting question — if you receive BTC from one of these addresses as payment for something, do you refuse it? You know it’s stolen and you might worry someone else who you might pay in the future would be able to track down that it’s stolen, so do you ask for “clean” BTC that isn’t linked to known theft? I don’t necessarily know the answer here. This is something that you can’t do with paper bills

Can one even refuse it? If someone just sends tainted coin to my address, am I screwed?

Post by [deleted] » Wed, Apr 14, 2021, 7:28 PM UTC

schmichael wrote: post #15

nknealk wrote: post #8

Here’s an interesting question — if you receive BTC from one of these addresses as payment for something, do you refuse it? You know it’s stolen and you might worry someone else who you might pay in the future would be able to track down that it’s stolen, so do you ask for “clean” BTC that isn’t linked to known theft? I don’t necessarily know the answer here. This is something that you can’t do with paper bills

> if you receive BTC from one of these addresses as payment for something, do you refuse it? You cannot refuse a BTC transaction. You could return it in a subsequent transaction, and pay the transaction fee, but I would imagine your address would be forever tainted by a number of illicit address/transaction tracking algorithms.

Post by whimsicalism » Wed, Apr 14, 2021, 7:30 PM UTC

sekai wrote: post #18

raziel2701 wrote: post #10

Is that money trapped in the system? The moment they sell to USD that account is now linked to a real person no?

It's possible to swap into monero without using any KYC exchange, but that requires liquidity. So it could take years.

Post by gst » Wed, Apr 14, 2021, 7:33 PM UTC

grlass wrote: post #25

liorn wrote: post #16

Earlier quoted context omitted.

Can one even refuse it? If someone just sends tainted coin to my address, am I screwed?

iirc, a number of wallets allow you to specify which unspent TX outputs you use. So if you got tainted coin sent to your address, you could avoid using that UTXO in future TXs. That might protect you from some scrutiny.

Post by glimshe » Wed, Apr 14, 2021, 7:34 PM UTC

chrisa wrote: post #21

schmichael wrote: post #15

Earlier quoted context omitted.

> if you receive BTC from one of these addresses as payment for something, do you refuse it? You cannot refuse a BTC transaction. You could return it in a subsequent transaction, and pay the transaction fee, but I would imagine your address would be forever tainted by a number of illicit address/transaction tracking algorithms.

That's an interesting angle to cash out... just start sending to 1,000s of addresses - who's to say which addresses are owned by the criminals, and which are owned by other people? They'd get less than cashing it all out themselves obviously, but it would take forever to unravel what actually happened (if possible ever)