How to use Bitcoin to hide Money: Bitcoin Money Laundering Guide
How to use bitcoin to hide money is a question that many folks who find themselves possessing funds in fiat currencies or Bitcoins want answers to. In fact, there are legitimate reasons for wanting to keep your financial transactions private especially when handling Bitcoins. You don’t have to be laundering money to want this.
For example, with the increasing cases of Cryptocurrency exchanges deploying forensics tools such as Chainalysis, you could easily find yourself in possession of ”tainted or illegal” coins even if you have not done something wrong.
These tools have the ability to ”map” your Bitcoins back to a previous illegal source or activity which is associated with your Bitcoins. If the Bitcoins in your wallets are associated with a previous illegal activity (whether you’re involved in this illegal activity or not), you’ll have your account frozen and to some extent, authorities will begin to scrutinize your financial activities.
If you are a malware expert or a hacker who has managed to crack the code to steal Bitcoins from internet users (I am not a sympathizer, so don’t get offended if you’re reading this article from the perspective of a victim), you might find yourself increasingly interested in how to launder money using Bitcoin.
Transferring your coins through a few addresses simply won’t cut it because we’re in the era of advanced blockchain forensics tools (as I have just stated above). So this raises the question of how to use bitcoin to hide money and avoid detection by the authorities.
Note: I am writing this article solely for educational purposes. I am in no way responsible for damages that might be caused by this information.
How to use Bitcoin to hide Money
I have 3 perspectives on this matter.
If you are interested in this subject, it could mean that you already have a large amount of Bitcoin which you are worried about or you have ”dirty” money held in fiat currencies like USD or EUR and are looking to launder those funds to avoid losing them when the banks freeze your assets.
The other scenario under which you could be seeking answers to how to use Bitcoin to hide Money could be related to your need to restore your financial privacy with the aim of hiding money from your friends, foe or potentially running into bad luck, just the way I described at the start of this article.
The creeping idea of ”Tainted” Bitcoins and why you should take it seriously
The average Bitcoin user is not aware that freshly-baked Bitcoin attracts a premium price since they are not associated with any history.
Jameson Lopp, in this article, points out that surveillance firms have cropped up and are providing ”tainted analysis” services to determine whether Bitcoins are from an ”illegitimate source”.
They use certain algorithms to help them detect the source of the Bitcoins in question but these can result in innocent users getting caught up in the technology dragnet.
If the algorithm determines that your Bitcoins are coming from a ”tainted” history, you’ll be excommunicated from the platform you are using (even if it’s Coinbase) or any other platform since you are deemed as a ”risky” customer.
How to hide money in Cryptocurrency and never get caught
There are several websites (this one is a good example) that can help you hide your Bitcoins to make it impossible for anyone wanting to probe the source of your funds to trace your transactions or prosecute you.
You need to think about how you’ll obfuscate your Cryptocurrencies or hide their origin.
When you have a lot of Bitcoins in an exchange or inside a wallet and want to hide their origin, or are looking to transfer them to a cold storage while avoiding detection, there is generally one way to achieve this mission. That option is called Coin mixing and the websites that offer these services are called Cryptocurrency tumblers.
How a Bitcoin Tumbler or Coin Mixer works
By now, you should understand that not all people who are interested in the question of ”How to use bitcoin to hide money” obtained their Bitcoins illegally.
But if by any chance you are interested in laundering money using Bitcoin, this piece of information can still be useful because the process is the same regardless of the reasons why you’re looking to conceal your tracks.
This image is a perfect illustration of how a Bitcoin Tumbler works to conceal the tracks of Bitcoin users.
In the above diagram, I’m simply trying to show you that Bitcoin Tumblers work by accepting Bitcoins through multiple wallets, then distributing those Bitcoins to other multiple wallets before channeling them to a single wallet. From there, the funds can reach the recipient minus the fees.
Bitcoin Tumblers like this one ensure 100% anonymity of funds that you receive in Bitcoin, Ethereum and other coins. It perfectly answers the question of how to use Bitcoin to hide money.
Additional steps to ensure total anonymity
Even when you use the best Bitcoin mixer in 2019, there are some additional steps recommended to ensure that forensic experts won’t trace you.
I recommend that once you receive your Bitcoins from a Cryptocurrency mixer, you should create a new wallet (there are many services on the internet that let you create new Bitcoin wallets) and transfer your coins to that wallet.
When doing so, you should use the Tor browser (which is helpful for anonymous browsing) in order to create a wallet with a service of your choice. If you have no idea how to achieve this, just contact me and I’ll give you the steps to using the Tor browser to setup a new wallet.
Note: If you want 100% anonymity after receiving a huge amount of funds in Bitcoins, you can rinse and repeat the above steps (i.e taking your coins through this Cryptocurrency Tumbler a second time and having them send you the coins just like they did in the first phase. From there, you can even create a second new wallet. This process might seem impractical for the daily Bitcoin user but when you’re facing instances where you want delays between coin source and coin destination, this can be valuable. I cannot emphasize further on the importance of this step if you’re a hacker or you have a huge amount of Bitcoin which you don’t want frozen by the authorities.
Choose a Cryptocurrency exchange with no KYC policy
When looking for how to use Bitcoin to hide money, you should think about Cryptocurrency exchanges that don’t enforce KYC policy.
These Crypto exchanges also provide hot and cold wallets that ensure the origin of your coins is 100% anonymous.
To confuse the keenest block chain forensic expert off the scent, trade your Bitcoins with other coins like Ethereum, Litecoin etc. But please note that these steps should be performed only after you’ve utilized a Bitcoin coin mixer.
Another option is to use Bitcoin gambling sites that don’t enforce KYC policy. You can also use these exchanges to launder your coins and ensure that you are only receiving fresh ones.
Whether you’re looking for how to hide bitcoin transactions or are interested in How to use bitcoin to hide money, these steps will be extremely beneficial to your goal.
I have highlighted some procedures used by the best Bitcoin mixer in 2019 to make Bitcoin transactions anonymous. You can go through it on Quora website.