Imagine the situation: you are sitting, not bothering anyone and doing your daily activities. At one point you decide to go to the crypto exchange to see how your assets are doing and then you see that the wallet and account are blocked. The reason for blocking was the fact that the exchange found “dirty” coins in your assets. What to do in this case and how “dirty” cryptocurrency can get to the user’s wallet – let’s talk in this article.
Dirty cryptocurrencies are digital assets that have been stolen from cryptocurrency exchanges or used for criminal purposes. Not only popular assets, but even stablecoins and ERC-20 tokens can become “dirty” coins.
Information on the volumes of cybercrime varies greatly. For example, according to Europol, about $ 5.5 billion of illegal and criminal funds in digital assets are laundered in Europe every year.
Analysts at Chainalysis, a company that monitors crypto transfers, suggest that the bulk of the laundered funds comes from over-the-counter brokers.
It is difficult to say how many of the “dirty” coins are flagged by exchanges. Most likely, billions of dollars are spinning there. Therefore, there is always a risk that such a cryptocurrency may end up in the user’s wallet, which is far from the underworld.
Due to this, “clean” coins that have been recently mined are much more valuable than those already used. Because of this, they are more expensive.
How “dirty” coins end up in the wallet
Trading platforms and exchangers are constantly monitoring dirty coins. After that, coins noticed in illegal actions are marked.
In order to obfuscate traces and clear coins, scammers use a number of tricks. For example, they can use cryptocurrency mixers, or divide transfers into several small parts. Further in the course are unregulated sites and cryptocurrency ATMs. Typically, dirty coins will be sold at a large discount to get rid of unwanted assets as soon as possible. As a result of such actions, “dirty” coins can easily get into the user’s wallet, which is far from illegal actions. It will not work to buy such assets on regulated platforms and exchanges that comply with the KYC / AML policy – the platforms block dirty coins as soon as they are discovered. However, a user can buy a dubious asset on an unregulated site or dubious exchange, as well as receive them as payment for a product or service.
How To Avoid Dirty Coins?
Today, there are a number of ways that you can reduce the likelihood that dirty coins will end up in your wallet.
- Services and applications. Such specially created services as Chainalysis, Chainalysis KYT, Crystal, IdentityMind, Longhash, Traceer will help the user to check the origin of the coin.
- Regulated platforms. If you only buy coins from regulated platforms, then you can be completely sure that you are buying “clean” coins.
- Two wallets. The creation of two wallets takes place. The logic of the work is simple: to the first wallet you will deposit only those coins that you purchased on regulated sites, or mined, and send those assets to the second wallet, the origin of which is not certain. If you work in this way, then the chance to “stain” clean coins in the first wallet disappears.
- Assets verification. If you are going to receive assets from the sale of a product or service, then it is worth checking the sender’s transaction, or asking to send coins in parts. You can also ask to make a test transfer to a wallet specially created for this, then check the assets there.
- Record actions. You should always record any actions related to cryptocurrency. In this case, if the “dirty” coins get into your wallet, you can easily prove your case.
How to get rid of dirty coins from your wallet?
Unfortunately, there is no perfect and completely legal way to get rid of dirty coins. If you try to transfer them to a regulated exchange, then, more likely, they will simply be blocked. Your account is waiting for you too. After that, the wallet will be sent to the blacklist.
There remain the methods used by fraudsters. Use cryptocurrency mixers, try to transfer coins to an unregulated exchange, or sell for cash or on the black market. However, it is worth remembering that, from the point of view of AML legislation, in some jurisdictions such actions will be equated to money laundering, with all the ensuing consequences.
“Dirty” coins can get around you if you don’t spend time on unregulated exchanges or questionable platforms. It is also worth remembering that if you decide to sell any product or service for digital assets, you need to create a separate wallet, where “clean” coins will not be located. This will save you from losing all your capital. It is always better to buy or trade digital assets on regulated exchanges, where you can be one hundred percent sure that not a single “dirty” coin will end up in your wallet. But for comfortable trading with top digital assets, we can suggest paying attention to the RevenueBot service. The service provides the opportunity to create trading bots on the largest cryptocurrency exchanges: Binance, Bittrex, Bitfinex, Exmo and others. Creating a bot is free of charge, the service will not take commissions until the client begins to make a profit from trading the bot. With the help of deep settings of the bot, the service’s clients implement trading strategies that are problematic to experience in normal trading. We will immediately indicate: the bot does not have access to customer funds on the exchange, but trades using API keys, that is, the account will remain out of access. RevenueBot has over 28 thousand customers who earn money thanks to trading bots.
Why should I choose this service?
- Pay the commission only after making a profit.
- The bot settings open up a variety of ways to make a profit.
- Inside RevenueBot, a marketplace is implemented where customers can buy a ready-made bot so as not to bother creating their own, or sell their own if the configuration has shown efficiency. Also, the services of a mentor (an experienced customer of the service) are purchased on the marketplace, who is ready to answer the questions of newcomers. Over time, you can become a mentor yourself, getting additional profit for this.
- Regular updates of the service’s features that optimize the trading process.
- The presence of the RevenueBot referral program allows you to earn money on trading, even without resorting to trading. Attract new customers for the service and get up to 30% of the profit they receive every month (but not more than 15 USD).
This is a small list of the advantages of the service. You can continue to list the positive qualities of RevenueBot, but why do this if you can go to the official website of the service and see for yourself everything? It is highly recommended to make decisions faster, because the crypto market does not stand still, but grows at exorbitant steps. Who knows how much profit is missed by someone who does not dare to come and start trading with RevenueBot.