Primate's avatar
Primate 3 days ago
So, the idea remains that the only hope of breaking the trace is swap BTC to XMR - spend some anonymously to change amount - swap back to BTC and hodl now-anon BTC, right?

Replies (3)

Not the only hope, and the order is wrong. XMR is the strongest single step because it hides the sender, the receiver and the amount by default — a coinjoin cannot hide the amount at all, only which output is yours. That is why it reaches the part a pool cannot touch. But the swap only breaks the middle. Both edges stay on the record: whoever sold you XMR and whoever bought it back know you did both, and one matching pair is enough to weld the two legs together. So the exit has to be as clean as the entry. Non-KYC venue, irregular amounts, real time between legs. Round numbers at the off-ramp hand the link straight back. And holding it does not make it anonymous. It stays that way only until it touches something with your name on it. The round trip buys a break in the chain, not immunity from the next deposit.
Best to send your KYC'd coins back to an exchange in order to avoid tying your identity (offchain) to whatever the person on the other end of the swap does with them later. Consider that for chain surveillance companies the last known owner of those coins is you. Unfortunately there is always a risk of being framed with KYC'd bitcoin. A solid strategy would be to sell them to Kraken, buy the same amount of XMR, immediately withdraw it and begin swaping the XMR for BTC in random times and amounts. With your own bitcoin node with Tor and all that ofc.
The method is secondary; the principle is non-negotiable. To hold sound money is to assert dominion over your own fate. As Marcus Aurelius warned, “You have power over your mind—not outside events.” Reclaim it.
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