1 00:00:00,000 --> 00:00:08,000 Now, as we mentioned before, the Bitcoin ledger or the blockchain is completely public and anybody 2 00:00:08,000 --> 00:00:10,000 can read it and analyze it. 3 00:00:10,000 --> 00:00:17,000 Now we also mentioned that in the blockchain, in each entry, there isn't a lot of information about 4 00:00:17,000 --> 00:00:23,000 the people transferring money, but you'll see the addresses of the senders and receivers. 5 00:00:24,000 --> 00:00:30,000 So this is fine as long as these addresses are not linked to identities. 6 00:00:31,000 --> 00:00:37,000 Now there is a number of scenarios where you wouldn't want your address to be linked to another address. 7 00:00:38,000 --> 00:00:46,000 For example, let's say you purchased your coins using a coin exchange that requires ID verification. 8 00:00:46,000 --> 00:00:52,000 In that case, the address that the money will come from will be linked to your real identity, and 9 00:00:52,000 --> 00:00:55,000 you'll be sending it to your tails wallet. 10 00:00:55,000 --> 00:01:01,000 That way, if anyone analyses the blockchain, they'll easily be able to link your exchange address 11 00:01:01,000 --> 00:01:08,000 the one that you use to purchase the bitcoins and verify your ID with to the ID of the electron wallet 12 00:01:08,000 --> 00:01:10,000 that you created on tails. 13 00:01:10,000 --> 00:01:16,000 And that way this address is linked to your identity, and then any transactions you make or receive 14 00:01:16,000 --> 00:01:19,000 will be linked to your real identity. 15 00:01:20,000 --> 00:01:26,000 Other examples would be if you're sending money to another address that you're not sure if the user 16 00:01:26,000 --> 00:01:32,000 is practicing proper OPSEC, or if you are not sure if the user is using his money legally. 17 00:01:32,000 --> 00:01:39,000 We can't really know what people do in their personal lives, so breaking the link between the sender 18 00:01:39,000 --> 00:01:46,000 and the receiver is not easy when it comes to bitcoins because the blockchain is completely public. 19 00:01:47,000 --> 00:01:51,000 This is where tumblers and mixers come in play. 20 00:01:51,000 --> 00:01:53,000 The idea of this is very simple. 21 00:01:53,000 --> 00:02:01,000 First of all, you send your coins to a server or a service that's available to a number of people, 22 00:02:01,000 --> 00:02:06,000 not only you, and then this service will send your money to a different wallet. 23 00:02:06,000 --> 00:02:13,000 This way you're breaking the connection between the sender and the receiver, and you can actually link 24 00:02:13,000 --> 00:02:15,000 a number of mixers if you want. 25 00:02:15,000 --> 00:02:21,000 So you can send this to mixer number one, mixer number two, mixer number three, and then to your 26 00:02:21,000 --> 00:02:23,000 wallet or to someone else's wallet. 27 00:02:23,000 --> 00:02:29,000 And you can even do this to send money to your own wallet to hide the connection that you actually own 28 00:02:29,000 --> 00:02:30,000 both wallets. 29 00:02:31,000 --> 00:02:37,000 For example, let's say you purchased money from an exchange that required you to verify your identity. 30 00:02:37,000 --> 00:02:44,000 You transfer that money to a wallet in here, and then so this wallet will not be linked to your identity. 31 00:02:44,000 --> 00:02:50,000 You send the money to a mixer, and then the mixer will send the money or the coins to another wallet 32 00:02:50,000 --> 00:02:51,000 that you control. 33 00:02:51,000 --> 00:02:58,000 And this way it is very difficult to link the transaction that happened here with the transaction that 34 00:02:58,000 --> 00:02:59,000 happened here. 35 00:03:01,000 --> 00:03:07,000 Now the way mixture is mixed, the coins differ depending on the mixer that you use. 36 00:03:07,000 --> 00:03:13,000 So some of them will literally just randomly select an equal amount of money that you sent from their 37 00:03:13,000 --> 00:03:15,000 own wallet and send it to you. 38 00:03:15,000 --> 00:03:20,000 Others will be mixed in the money that they have with different exchanges and send it to you. 39 00:03:20,000 --> 00:03:26,000 There is others that will literally sell the money or the coins that you give them in coin exchanges. 40 00:03:26,000 --> 00:03:31,000 They'd use crypto stock exchange to buy coins and then send you the new coins that they bought. 41 00:03:31,000 --> 00:03:37,000 So again, making it very, very difficult to track, some of them will split the payments and send 42 00:03:37,000 --> 00:03:41,000 it to you in a number of transactions instead of sending it in one transaction. 43 00:03:41,000 --> 00:03:46,000 Some of them will add a time delay to make it even more difficult to trace. 44 00:03:46,000 --> 00:03:51,000 So there is a lot of techniques that can be used, but the whole idea is the same. 45 00:03:51,000 --> 00:03:55,000 You send the money to the mixer and you wait for the money to arrive in the second wallet. 46 00:03:56,000 --> 00:04:00,000 Now, because there are a lot of mixers, I can't really cover all of them. 47 00:04:00,000 --> 00:04:05,000 You can simply look in DuckDuckGo or Google or any of the other search engines that I showed earlier 48 00:04:05,000 --> 00:04:11,000 in the course for Bitcoin mixers and see all the options that you have and see how they work and compare 49 00:04:11,000 --> 00:04:14,000 them and then use the one that's most suitable for you. 50 00:04:15,000 --> 00:04:20,000 But in this lecture, I want to show you three examples that are slightly different from each other. 51 00:04:20,000 --> 00:04:23,000 Therefore, they can be useful in different scenarios. 52 00:04:24,000 --> 00:04:31,000 Now all of these mixers have a darknet and a clear net address, and if you scroll down on all of them, 53 00:04:31,000 --> 00:04:35,000 you'll see both the clear net and the darknet addresses at the bottom. 54 00:04:36,000 --> 00:04:41,000 For some reason, this one that I'm using right now, the Bitcoin laundering dotcom, the darknet address 55 00:04:41,000 --> 00:04:41,000 is not working. 56 00:04:41,000 --> 00:04:44,000 That's why I'm accessing it over the clear net address. 57 00:04:45,000 --> 00:04:49,000 Now, the cool thing about this one is it's actually very cheap. 58 00:04:49,000 --> 00:04:51,000 It doesn't charge you any fees. 59 00:04:51,000 --> 00:04:57,000 You only pay for transaction fees, but it doesn't really do a lot of complex operations. 60 00:04:57,000 --> 00:05:01,000 When mixing the coins, you literally send the coins and then it sends you coins back into the other 61 00:05:01,000 --> 00:05:05,000 wallet, breaking the connection between the sender and the receiver. 62 00:05:07,000 --> 00:05:09,000 The next one is BitMEX. 63 00:05:10,000 --> 00:05:15,000 The way this will work is you send the coins and they store all of the coins in one wallet. 64 00:05:15,000 --> 00:05:21,000 They mix the coins in that wallet and then they give you different coins into the second wallet. 65 00:05:21,000 --> 00:05:26,000 Now, these guys do charge a little bit more, but again, they're fast enough. 66 00:05:26,000 --> 00:05:27,000 I should have also mentioned that bit. 67 00:05:27,000 --> 00:05:33,000 Laundering is pretty quick, it's pretty instant, so it's much faster than a lot of other services. 68 00:05:33,000 --> 00:05:39,000 Now, you should keep in mind the more complex the mixing process is, the longer it takes to get your 69 00:05:39,000 --> 00:05:43,000 money, because obviously there would be more operations involved. 70 00:05:43,000 --> 00:05:46,000 This leads us to mixed up dot IO. 71 00:05:46,000 --> 00:05:53,000 This is the most expensive service between the three, but it is the most anonymous because when you 72 00:05:53,000 --> 00:05:58,000 send the coins to them, they don't simply just mix it and send it back to you. 73 00:05:58,000 --> 00:06:05,000 They will use this to buy crypto from stock exchange and then send you brand new coins that they bought 74 00:06:05,000 --> 00:06:07,000 from stock exchange and from investors. 75 00:06:08,000 --> 00:06:14,000 Now with this, the amount that you receive can also be split into a number of transactions. 76 00:06:14,000 --> 00:06:20,000 A time delay can also be added to make it more difficult to trace these coins and link them between 77 00:06:20,000 --> 00:06:22,000 the sender and the receiver accounts. 78 00:06:24,000 --> 00:06:31,000 Last but not least, I should also mention that there are a number of mixers that are related to Darknet 79 00:06:31,000 --> 00:06:33,000 markets such as Helix. 80 00:06:33,000 --> 00:06:37,000 Now, this is supposed to be a really, really good mixer. 81 00:06:37,000 --> 00:06:42,000 The only problem I see with it is the fact that it is related to a darknet market. 82 00:06:42,000 --> 00:06:47,000 So the fact that you're going to be using this mixer, sending or just receiving money from an address 83 00:06:47,000 --> 00:06:53,000 that's related to this mixer, could raise a lot of question marks on why you're using a mixer like 84 00:06:53,000 --> 00:06:53,000 that. 85 00:06:53,000 --> 00:06:59,000 Therefore, depending on your situation, it might make more sense to use one of the ones that I'm showing 86 00:06:59,000 --> 00:07:00,000 you right here. 87 00:07:00,000 --> 00:07:04,000 And like I said, there are lots of mixers out there. 88 00:07:04,000 --> 00:07:08,000 You should do your own research and see which ones fits your scenario best. 89 00:07:09,000 --> 00:07:11,000 Using them is pretty much the same. 90 00:07:11,000 --> 00:07:16,000 And in the next lecture, I'm going to show you how to use mix them just as an example. 91 00:07:16,000 --> 00:07:20,000 So you get an idea on how they work in general.