In Bitcoin, anonymity is a double-edged sword. While it protects user privacy in legitimate uses, it has also been exploited for criminal activities like ransomware, money laundering, and fraud, posing challenges for regulators. Mixing transactions are a key method to enhance anonymity in Bitcoin. With advancements in mixing technologies, various services have emerged, allowing users to obscure their transactions. This paper detects and analyzes mixing transactions generated by second-generation mixing technologies and two popular mixing services, focusing on data from the past year (June 2023 to June 2024) and from 2009 to 2024. The findings aim to help regulators better understand mixing technologies and improve clustering methods, such as multi-input heuristics, by filtering these transactions.

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Detection and Analysis of Bitcoin Mixing Transactions

  • Huijuan Wang,
  • Dongfang Zhang

摘要

In Bitcoin, anonymity is a double-edged sword. While it protects user privacy in legitimate uses, it has also been exploited for criminal activities like ransomware, money laundering, and fraud, posing challenges for regulators. Mixing transactions are a key method to enhance anonymity in Bitcoin. With advancements in mixing technologies, various services have emerged, allowing users to obscure their transactions. This paper detects and analyzes mixing transactions generated by second-generation mixing technologies and two popular mixing services, focusing on data from the past year (June 2023 to June 2024) and from 2009 to 2024. The findings aim to help regulators better understand mixing technologies and improve clustering methods, such as multi-input heuristics, by filtering these transactions.