Bitcoin Fog is a centralised cryptocurrency tumbler for bitcoin.[2][3][4][5][6]In December 2013 the site was used to launder a part of the 96,000 BTC from the robbery of Sheep Marketplace.[7] and traced back to cryptocurrency-tumblers like Bitcoin Fog.[8][9]^ /BitcoinFog/status/835630594319056898 ^ ^ ^ ^ ^ ^ ^ ^Inside a bitcoin laundry II: Bitcoin Fog Want to wash some coins?Last time we looked at bitcoin laundries - what they are, what they do, and why you might use one - and no, it’s not all about washing ill-gotten gains before going on a crystal meth-buying spree; there are plenty of legitimate reasons you might want untraceable bitcoins.This time, we’re taking a look at Bitcoin Fog, the most popular bitcoin laundry on the (dark)web.Read also: Tor tutorial You’ll need Tor to get started, since the darkweb isn’t accessible using a regular browser.How does it work?Well, it’s pretty simple.‘You register an account on our website and deposit bitcoins to the designated address.

After a couple of network confirmations [actually six], your money is registered on your Fog account, and you can schedule withdrawals.Each withdrawal will be split in a random number of payouts, depending on the amount, and the relative size of each payout will be randomized as well.Even the timing of those payouts will be randomly spread out over a period of time you will specify.’ Simples.Bitcoin Fog withdrawals require six confirmations and a minimum delay of six hours for safety.The service is not designed for a quick wash, but then, security and speed don’t go together anyway.They’re entirely used to dealing with larger amounts of 100 bitcoins and upwards (‘for amounts above 100 BTC we recommend [waiting] a day, above 300 BTC a couple of days, about a week for 1000 BTC, etc.’), but their minimum withdrawal is just 0.035 BTC.Not exactly reputable, but certainly professional Pre-wash Since I want to be particularly careful, I’m going to start with a pre-wash cycle.

That means creating an entirely new bitcoin address using my blockchain.info wallet, and sending some coins there before depositing them in Bitcoin Fog.The idea is to make sure that no one knows I’m even using Bitcoin Fog.Sending funds back from an exchange is a pretty good way of making them untraceable to the casual snooper, since most exchanges pool funds in a hot wallet.It would be possible to learn more with the exchange’s cooperation, but someone would have to know they needed it first - and have good reason to get it.tricks bitcoin billionaireI buy $10 at Bitstamp and send them to my pre-wash account.bitcoin charts hashrateIf I was being super-careful, I’d use a Chinese exchange that is highly unlikely to cooperate with any western authorities.bitcoin pool algorithm

(If I was being super super careful, I’d do all this over Tor too, just in case.)Whilst that’s processing, I create a Bitcoin Fog account - a simple matter of a login name and address.Unsurprisingly, there’s no requirement for an email address.Then off the coins go from the pre-wash account to my new Bitcoin Fog address.A few confirmations later and the funds are there.I wait a few hours, for safety.I’m also creating a separate, entirely new address for the funds to go back to.litecoin not confirmingIf you use a pre-existing address, even the pre-wash address, then there’s a link between transactions and the process has been pointless.bitcoin athenaNext week, I’ll take a look at the withdrawal process, and the effect it has on traceability.best litecoin gpu 2014

As we wait for emerging cryptocurrencies such as Darkcoin and the standardisation of Dark Wallet the current task of coin-mixing remains an immediate issue.As it stands Bitcoin Fog remains the gold standard of coin-mixing.However, it is important that people be made away that this is a slow process.Bitcoin Fog insist on six confirmations for deposits and will set a minimum delay of six hours for withdrawals to occur to held randomise/anonymise the process.This is a sound process for those approaching their transactions in a structured and planned manner.It is not ideal for anyone trying to get money quickly from one account to another.On this basis we can say Bitcoin Fog remains the gold standard in long-term scheduled coin-mixing.Presumably this appeals most to vendors who are washing large amounts of Bitcoins (numbers most of us will likely never see!).It might also appeal to those content to sacrifice speed for privacy as a rule.Fees remain at 1%-3% in random order and this could be a hefty cut the larger the transaction.

Nonetheless the service remains broadly unchallenged in terms of obfuscation./) The second service to be analysed is the ‘Shared Coin’ feature of Blockchain.info.A descendent of their original ‘Shared Send’ feature (currently discontinued) this method suits those undertaking transactions with an eye toward the medium-term.In the old ‘Send’ service one essentially had a mirror of Bitcoin Fog’s process of absolute disconnection between transactions.Coins sent from one wallet to another had no connection except perhaps to the most determined of analyst.However, these days the only option available is ‘Shared’ coin where one mixes in their transaction with a number of others thus muddling precisely who has sent coins to who.This is not fool-proof as a method since a certain degree of ‘taint,’ which can be more easily analysed, remains and thus we might say that this method introduces a degree of plausible deniability.The process is also relatively slow since one’s transaction is occurring within a much larger pool than normal and thus confirmations can take a little while to process.

In this sense we can safely call ‘Shared Coin’ a medium-term solution for those who simply wish not to have openly transparent transactions, but who are not absolutely attempting to disguise their wallet interactions.This service is likely to suit most casual Bitcoin users and darknet market customers will surely find it appealing in their efforts to at least provide some basic cover for their interactions with the various marketplaces.Darkcoin’s Darksend may make this requirement obsolete as a general wallet feature, but for now thisis the best option for most users.There is no extra cost to Sahred Coin beyond standard transactions fees (and if one chooses to increase repetitions a donation of 0.5% is asked for, but not required).A more recent mixing service is Bitmixer (https://bitmixer.io/) whose entry to the market is relatively new.In such cases a certain degree of caution should always be carried by anyone employing it.Bitmixer draws upon its own pool of Bitcoin reserves and each deposit arrives at the end of the chain.

The top end of the chain is used to further one’s deposit amount to a forwarding address thus breaking the link between wallets as one desires.It is an interesting service although it is not the easiest to use.The site design remains a little confusing and it is the opinion of this writer that a more direct input/output field should be implemented by the service.This is to avoid problems from users depositing funds, not waiting long enough for the deposit, and then trying to forward too early.When this occurs one is provided with a new address with no real sense of whether this process has worked until the coins arrived at the desired destination.This is not a major flaw, but simply one that can be surely seen as a possible bug to be ironed out.That being said in terms of speed bitmixer.io offers the best short-term solution to disconnecting wallets albeit by placing their trust in a centralised system built on a reserve of coins.Neatly a letter of Letter of Guarantee is provided for those wishing to contact support and a brief generic test revealed support to be prompt in responding to inquiries.

Their reserve wallet currently holds 1632.32 BTC which should keep them in shape for a while to come.It is important to keep in mind that anonymity in using any such service depends on constant self-vigilance.Accessing the latter two should be, at a minimum, through a VPN and make sure to cycle your IP address as much as possible.Furthermore, it is wise to sign up with a throw away address and for Shared Coin and undertaking each process with a new wallet.Any contact with a centralised service, such as Bitmixer, should be taken from a dummy account too.This is best for both parties though the simple act of the deposit ties you to at least one particular action.It is our opinion that the sensible user of any dark net marketplace ought to plan their transactions in advance by mixing their coins through Bitcoin Fog over Tor after deciding on their purchase.Once this process has occurred they will be operating at, at least, a decent level of privacy.Coupled with astute use of PGP encryption oneis, then, only left at the mercy of customs.