There are many red flags to watch out for that can identify potential bitcoin mixer scams. Each bitcoin mixer service may have its own unique flaws – for example, if it does not allow you to set a delay, or if it only allows you to withdraw to a single address. But for the sake of this segment, we are only going to be looking at major flaws.
Identifying Bitcoin Mixer Scams
There are a few major flaws to look out for when using a Bitcoin Mixing Service:
Poor Reputation & Lack Of Reviews
Naturally, you do not want the Bitcoin Mixing Service you use to run away with your coins. This goes without saying. If you want to avoid this, do not use a service without doing research in advance. If you’re unsure about a service, search for reviews online or on darknet discussion forums like Deepwebtalk.
Search for reviews on the bitcoin mixer service you intend on using. We have created an official list of trusted bitcoin mixers which can be found at: Trusted Bitcoin Mixer Services
Identification by Blockchain Analysis.
Some Bitcoin Mixing Services have been identified and tagged through Blockchain Analysis. This is where researchers and analysts have managed to associate certain wallets with certain services, which with enough work could be used to help track you down. To check if a service you are considering may have been tagged, you might want to look at the following Blockchain Analysis website:
Such services that are tagged, clearly aren’t using unique wallet addresses which is an obvious red flag for a potential scam.
Small Coin Pools
This is a problem most commonly associated with newer mixing services that have smaller Bitcoin reserves and low volume. If the service you are using only has a small reserve of Bitcoin, then depending on the size of your deposit you could end up receiving a part of or all of the same coins as you deposited on withdrawing. If you are mixing a large quantity of coins, avoid newer mixing services that may have smaller Bitcoin reserves.
Finding a trusted bitcoin mixer
In addition to doing your own research, we would like to suggest using a bitcoin mixer that’s been verified as a trusted service. While some bitcoin mixers may infact deliver, there’s always a good chance that their mixing strategies are insecure.
- For a complete list of trusted bitcoin mixers, visit: Top Bitcoin Mixers