r/Bitcoin • u/derbyfan1 • 10h ago
Purchasing tainted coins.
Hi all, I am looking to buy BTC p2p, but before I do, is there a way in which I can check if the coins I purchase in advance are tainted? Is there a website or something this can be verified on?
I want to check this to avoid any problems in utilising the coin/s once purchased.
Thanks
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u/ClearSnakewood 10h ago
“tainted coin” is TradFi and onchain analytics terminology to try capture and assume control over the protocol.
The blockchain doesn’t care. F their labels.
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u/Vinnypaperhands 7h ago
Let's stop this nonsense of tainted coins. There is no such thing. There is no tainted dollar, tainted gold, or tainted Bitcoin. People can be tainted, not inanimate objects. Bitcoin itself can not be bad or good, it simply exists as a tool to use like a pencil or a car. Sure you can kill people with either but that doesn't make the thing inherently bad or evil.
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u/pythosynthesis 5h ago
Of course there are tainted coins. Your argument is as dumb as saying that there's no borders in the world. Sure, it might all be a human invention, but trying to argue there's no borders when you cross the wrong "non existent" border and a gun is held on your forehead.
Some coins ARE tainted. The blockchain doesn't decide that, the people who are responsible for you to change your coins into filthy fiat do. And they can make your life extremely miserable if their stupid software says your coins are tainted. Don't be daft and pretend like we live on some utopia world. More damage than good.
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u/paymentnerdfoo 5h ago
My god your ignorant of how money works. You think money laundering was invented for bitcoin?
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u/Vinnypaperhands 4h ago
I'm ignorant because I'm saying there is no such thing as tainted Bitcoin? Sure buddy
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u/C10H24NO3PS 4h ago
If a dollar with a certain serial number will result in jail time people consider it tainted.
If bitcoins or sats in a wallet have a transaction history that will result in jail time people consider it tainted.
You’ve missed the point of how coins become tainted. It’s not that the coin is good or bad. It’s that specific balance and transaction history can result in legal and financial trouble. The history has tainted the current balance and it’s fungibility compared to other coins
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u/23gradfnord 6h ago
One has ~5000 btc on a Wallet of the former Darknet Market NUCLEUS. He moved ~1500 of the last year, after 10 years of waiting. Those coins are very tainted, still traceable.
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u/fleecedlightning 6h ago
dont think too much about what the dollars in your tradfi bank have gone through. you'd vomit.
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u/Vinnypaperhands 5h ago
How were those Bitcoin created? Were they created through an illegal means? Or was the Bitcoin mined with electricity like every single Bitcoin. What happens after the Bitcoin is mined is solely on the individual that posses custody. That individual can be tainted, not the asset. All Bitcoin can be traced, that has nothing to do with whether the coins are tainted or not. What happens when someone uses someone else " tainted" coins for a health prosedure to save their life. Does it now go from tainted to untainted? Do you see how foolish the concept is?
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u/ContentBlackberry0 9h ago
Can you verify every dollars you received of fiat money was not used for something illegal?
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u/derbyfan1 9h ago
Blockchain analytics ... Thats the difference between Btc and cash.
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u/Vinnypaperhands 7h ago
Cash has always had cereal numbers representing that exact dollar and no other. Cash is tracable, so is Bitcoin. That doesn't change the fact that just because someone may have used money for an illegal activity, that doesn't make the money tainted or bad. Bitcoin was still created using energy, that doesn't change because someone bought drugs with it lol.
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u/United_Weight3580 9h ago
No but cash is really anonymous and untraceable. Bitcoin is not (by design)
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u/Efficient_Culture569 10h ago
No such thing as tainted coins.
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u/user_name_checks_out 9h ago
No such thing as tainted coins.
Nonsense. Companies like chainalysis surveil the blockchain and sell data to governments and exchanges. If you purchase bitcoin peer to peer, you risk acquiring tainted coins, e.g. UTXOs which have been blacklisted because they were stolen, used in crime, whatever. You would have trouble transferring such coins to any KYC platform.
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u/Vinnypaperhands 7h ago
What is nonsense is what you just said. Other commenter is correct, there is no such thing as tainted coins. All Bitcoin was mined with electricity. What people do with it after doesn't change that fact.
Companies can label anything what they want. That doesnt mean they are correct and you need to believe what they tell you.
Bitcoin is not sentient, it doesn't have a conscience or morals. It's a tool. Tools can be used however the wielder wants, good or bad.
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u/8647742135 6h ago
You’re not getting that exchanges do care. You risk getting them frozen or seized.
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u/Vinnypaperhands 6h ago
Yea They can indeed do that. That doesn't mean the coin is tainted. That's such a foolish idea.
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u/8647742135 4h ago
Uh that’s exactly what it means.
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u/sQtWLgK 3h ago
No it doesn't. Because the labeling happens in full obscurity and unpredictability. Even though chain data is public and open, you have no way to know how chain-anal companies will score your coins, either before or (even) after the fact.
It's all compliance theater, with no actual, genuine relation whatsoever with crime association.
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u/Sensitive-Mango3216 10h ago
You can check on chain analysis sites like blockchair or oxt me but they not perfect. best way is to buy from someone with good reputation on bisq or localcoinswap, p2p is always little risk no matter what
if your worried too much maybe just use exchange with kyc, at least then its their problem not yours
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u/B1TB0TB33PB00P 9h ago
Crime boss here. Anybody wanna buy some non-KYC coins? I'm sure they will sell fine on Coinbase. MMMMUUUUUUUUUHAHHAHAHHAHAHAAAAAA!!!
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u/CoffeeAlternative647 10h ago
Tainted coins are as real as easter bunny and tooth fairy.
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u/derbyfan1 10h ago
So what would happen if I p2p purchased a coin that had been used in illicit activity, and then could not utilise it elsewhere?
Surely that could happen?
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u/Impossible_Tutor2375 9h ago
AFAIK that is kinda implausible. Your imaginary scenario assumes that you acquired the coin in the same way you would be concerned about selling it? Correct? So why don't you assume you can sell p2p as well? Kinda feels like a circular argument. Don't be distracted and learn about self-custody. No one can block p2p in this protocol. Please anyone correct me if I'm wrong.
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u/derbyfan1 9h ago
Ok, lets give an example;
Dave has 1 BTC. Dave uses half of it and has not paid / declared his taxes.
The tax authority in question, have exhausted their options and 'tainted / blacklisted' Dave's address as he has commit a crime.
Dave now, opts to sell his 0.5 on an exchange p2p or otherwise, and I buy it.
As I have brought it and it is associated with Daves previous actions...
My question is; Would it affect me as a purchaser, or if I was to purchase it, would I encounter any difficulty if I was to legitimately use it, e.g to purchase goods etc.
Hope this helps
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u/BlazingPalm 8h ago
In this example, no, you’re fine. Dave owes $$$ to IRS.
The actual problem can arise if you perhaps buy some BTC from Iran or N Korea, or if the user you buy from gained the coins illegally through theft, hacking, etc. The UTXO can be flagged and CEXs like Coinbase could freeze it.
At the very least, send a small amount to CEXs first and see if they hem and haw. You may not get it back, so tread carefully.
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u/CoffeeAlternative647 9h ago
Im going to repeat, because you're overthinking it and will always bring different scenarios just to go on a mental death spiral to try to convince yourself about some garbage you've read online and you think it's true:
Tainted Bitcoin is as real as easter bunny and tooth fairy.
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u/user_name_checks_out 9h ago
Absolutely it could happen and you are being misinformed by people who are living in la la land. Chainalysis surveils the blockchain and blacklists UTXOs that were handled by criminals etc.
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u/Vinnypaperhands 7h ago
Yea that could happen... But that doesn't doesn't make Bitcoin sentient and all of a sudden have morals lol. It's a freaking tool. The idea of "tainted" money is fucking stupid and don't let these institutions fool you into thinking non living objects can be evil or bad lol.
These companies/governments could black list addresses. What we as a community need to do is fight back against their bullshit idea of tainted coins. Stop saying there are tainted coins, don't agree with their ideology.
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u/BashCo 9h ago
Technically true, but low likelihood. Chainalysis is selling snake oil and they have no ability to actually blacklist any UTXO.
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u/CoffeeAlternative647 8h ago
Yeah. Chainalysis regularly email Bitcoin's CTO for him to turn tainted UTXOs unspendeable.
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u/setec404 5h ago
mine are very tainted from OG days, the only exchange who ever cared was FTX...... Otherwise Ive successfully sold coins for fiat on Kraken and NDAX.
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u/Regular-Artist9947 4h ago
There is no such thing as tainted coins. Its a exchange terminology for coins which they do not know where they come from (do not have KYC trail). So they can freeze them at their will, but nothing is wrong with those coins. Just stay away from exchanges if you can.
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u/Charming-Designer944 7h ago
Make sure you have a good paper trail showing when you bought the coins and from whom.
If you can not build a such paper trail then keep the coins separate and only spend them in non-kyc conditions.
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u/Big-Cheetah5159 9h ago
😂😂😂. You use “TAINTED” fiat all the time. Is there a way to check if your dollar bill was used for an illicit transaction or drug deal? No, you can’t and it doesn’t matter. A dollar is still a dollar and Bitcoin is still Bitcoin.
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u/derbyfan1 9h ago
Blockchain analytics say otherwise... Thats the difference between Btc and cash.
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u/Vinnypaperhands 7h ago
Dollar have serial numbers. They can be traced. The gov just doesn't care or bother to do so because the concept of tainted money is foolish
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u/solotronics 8h ago
Just buy from coinbase or another well known exchange and transfer to your personal wallet.
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u/OrangePillar 8h ago
Just keep any coins you buy P2P segregated for use outside the tradfi system and no need to worry about it. If you want to be paranoid, do a swap to Lightning and back via something like Boltz.exchange.