Sinbad Could Be the New Bitcoin Blender

Last year, the US Treasury sanctioned coin mixer Blender for allegedly helping North Korea’s Lazarus Group to launder stolen crypto. But now, blockchain analysis firm Elliptic says that Blender has likely relaunched as Sinbad.

bitcoin blender or tumblers, help users break the link between their bitcoin addresses and real-world identities. The process is typically managed by a centralized service that charges a fee for its services.

What is a Bitcoin Mixer?

Mixers are services that allow users to hide their financial transactions and identities in the Bitcoin blockchain. They also make it more difficult to trace coins and identify the owners of wallets. This is particularly important for those who want to stay anonymous in the Bitcoin ecosystem and avoid KYC regulations or similar requirements.

A bitcoin mixer works by combining the user’s coins with those of others to create a pool of mixed bitcoins. Then, the mixer sends the mixed bitcoins back to the user — often splitting them into multiple output addresses for additional privacy. There are two main types of mixers: centralized and decentralized.

Decentralized mixers are usually easier to use and less expensive than centralized ones. They typically have lower service fees and require fewer steps to set up an account. However, they can be more susceptible to attacks and are harder to verify the identity of their users.

Centralized mixers offer a more straightforward user experience, but they may be more vulnerable to security issues and other risks. It’s crucial to research the reputation and security of a mixer before using it. In addition, it’s essential to check whether the mixer is compliant with government regulations, such as money transmission laws in the United States, as failing to do so can lead to fines or even criminal charges.

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