Is there a discount for blacklisted crypto, similar to counterfeit currencies?

134 viewsGeneral Discussions

Is there a discount for blacklisted crypto, similar to counterfeit currencies?

It seems to be an increasing problem for folks who come into possession of crypto from outside the walled garden of CEXs who try to bring them inside the wall: the crypto has been sprinkled with the dust of “illicit” crypto, i.e. it’s been mixed with the proceeds from some sort of criminal activity and has been traced through blockchain analysis.

The CEX is then likely to either freeze and eventually seize it, along with the rest of the clean crypto in the same wallet. Naturally with blacklists changing by the minute, this is a risk for any transaction entering the walled garden.

This is a little bit similar to counterfeight currency, where the black market usually discounts it from 50-80%, because it causes a risk of being seized at the point of sale or transfer (At retail, perhaps just the loss of a large bill or two, at a wholesale drug deal, the risk of loss could probably include ones good health or life as well)

So, I’m curious…is there a similar risk discount to blacklisted crypto, as it likely needs to stay outside of the walled garden, and is harder to turn into useful cash, or is it so mixable that it’s not really a problem after all? If so, what does it run?

adrian ondachchi Answered question October 8, 2024
0

Use a private crypto. And avoid cex. Problem solved.

adrian ondachchi Answered question October 8, 2024
0

For bitcoin there is no discount, not sure about other.

Luwis K Answered question October 8, 2024
0