Can you launder stolen bitcoin at a low house edge btc casino?

Discussion in 'General Bitcoin Gambling Discussion' started by Smug Satoshi, Jul 1, 2016.

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  1. Smug Satoshi

    Smug Satoshi Member

    Just asking for a friend here obviously but can hackers safely launder stolen BTC by gambling at a low house edge casino? Rather than paying 5% - 10% to a mixing service wouldn't it make more since to play at a dice site that has a house edge of maybe half a percent?
     
    Smug Satoshi, Jul 1, 2016
    #1
  2. Humble Servant

    Humble Servant Active Member Staff Member

    I guess that is possible but it would probably be easier and cheaper to move your coins through alt-coin exchanges like Shape Shift or Poloniex.
     
    Humble Servant, Jul 5, 2016
    #2
  3. 4TheWin

    4TheWin Member

    If I was holding some really dodgy bitcoins there is no way I would trust a casino to launder them. If you deposit 1000 BTC and then gamble until you lose 50 BTC, the 950 BTC that you get back could be exactly the same 950 BTC you started with minus the 50 BTC. How do you know that your player funds are betting mixed up with the other players. You can't be sure so it would be too risky in my opinion.
     
    4TheWin, Jul 14, 2016
    #3
  4. Humble Servant

    Humble Servant Active Member Staff Member

    If the crypto-gambling site uses segregated wallets for each players funds then you'll be wasting your time.
     
    Humble Servant, Aug 16, 2016
    #4
  5. 2damoon

    2damoon Member

    i'm pretty excited about the new payment platform called tumblebit. all tumble transactions will be totally anonymous and happen off-chain so there will be no record. tumblebit can also be used as a mixing service. this could be the anonymity solution that bitcoiners have been waiting for and it could make monero and zcash redundant.
     
    2damoon, Sep 2, 2016
    #5
  6. BitcoinAnarchist

    BitcoinAnarchist Member

    I'm guessing from the name TumbleBit is some kind of bitcoin tumbler that will mix your coins but what is Mimblewimble?
     
    Last edited by a moderator: Sep 24, 2016
    BitcoinAnarchist, Sep 16, 2016
    #6
  7. Humble Servant

    Humble Servant Active Member Staff Member

    My understanding is Mimblewimble is a stripped down version of bitcoin that removes any historical data from transactions and combines inputs and outputs from different transactions to boost privacy. I'm not sure how it would help launder stolen or tarnished bitcoin though.
     
    Humble Servant, Oct 18, 2016
    #7
  8. 2damoon

    2damoon Member

    I recently read about a zero house edge casino that was launching on the Ethereum blockchain so I guess that would be the perfect place to launder your cryptocurrencies.
     
    2damoon, Mar 13, 2017
    #8
  9. Humble Servant

    Humble Servant Active Member Staff Member

    I doubt those Ethereum casinos still work because the network is completely congested due to the recent influx of ICO's. I have heard of people waiting days for deposits and withdrawals to process from exchanges due to a huge transaction backlog. There is no way you can run a casino on the Ethereum blockchain in the current environment.
     
    Humble Servant, Jul 4, 2017
    #9
  10. Gooch

    Gooch Member

    A guy called Alexander Vinnik was arrested this year for laundering stolen Mt. Gox money through the btc-e exchange even though the theft happened 4 years ago. It's pretty difficult to launder large amounts of btc, you'll eventually get tracked down by the authorities.
     
    Gooch, Sep 11, 2017
    #10
  11. Humble Servant

    Humble Servant Active Member Staff Member

    One easy way to launder your bitcoin is to buy Monero on a decentralised exchange like Bisq and then send your Monero to your regular KYC/AML exchange and cash out into dollars. Since Monero is private, your transaction should not be traceable.
     
    Humble Servant, May 11, 2018
    #11
  12. PokerGod

    PokerGod Member

    There is a new bitcoin wallet that allows you to mix coins with other users of the wallet. It's called https://www.wasabiwallet.io
     
    PokerGod, Nov 14, 2018
    #12
  13. Lance

    Lance Member

    Some people also launder bitcoin by depositing it at various bitcoin gambling sites and leaving it here for a few weeks or months. When they make a withdrawal eventually, they will likely get different coins.
     
    Lance, Feb 25, 2019
    #13

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