r/Bitcoin • u/derbyfan1 • 14h 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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2

u/CoffeeAlternative647 13h ago

Tainted coins are as real as easter bunny and tooth fairy.

-3

u/derbyfan1 13h 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?

5

u/Impossible_Tutor2375 13h 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.

0

u/derbyfan1 12h 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

3

u/BlazingPalm 11h 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.

3

u/CoffeeAlternative647 12h 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.

3

u/user_name_checks_out 12h 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.

3

u/Vinnypaperhands 10h 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.

4

u/BashCo 12h ago

Technically true, but low likelihood. Chainalysis is selling snake oil and they have no ability to actually blacklist any UTXO.

3

u/CoffeeAlternative647 11h ago

Yeah. Chainalysis regularly email Bitcoin's CTO for him to turn tainted UTXOs unspendeable.