What to Do if You Receive "Dirty" Cryptocurrency

What to Do if You Receive "Dirty" Cryptocurrency

You've decided to dive into the world of cryptocurrency, but instead of legitimate coins, questionable assets ended up in your wallet? Don't panic! We've prepared a guide on the right actions to take if you receive "dirty" cryptocurrency.

What are "dirty" cryptocurrency assets?

"Dirty" coins are digital assets that have been stolen from exchanges or used for criminal purposes. These assets may include various types of cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, and many others. Currently, crypto platforms mainly focus on monitoring the "cleanliness" of Bitcoin and Ethereum, but as anti-money laundering (AML) requirements tighten, attention is also turning to other digital assets.

How can "dirty" coins end up in your wallet?

There are several ways in which "dirty" coins can find their way into your cryptocurrency wallet:

• You may purchase them on an unregulated exchange or through a money changer.

• Receive them as payment for goods or services.

• Or become a victim of fraud.

  
  What problems can arise from "dirty" coins?

Having "dirty" coins in your wallet can lead to serious consequences.

Your wallet may be blocked on regulated exchanges, you may be asked to undergo a verification process and explain the origin of the funds.

Additionally, you could attract the attention of law enforcement agencies and face fines for involvement in money laundering.

What to do if you receive "dirty" cryptocurrency?

Do not accept new funds to a "dirty" address: If your address has become suspicious or received a high risk score, stop accepting funds to it. Create a new address for further transactions.

Identify the cause of the problem: Try to figure out why your address received a high risk score. It may be related to previous transactions or the inclusion of your address in databases associated with illegal activities.

Gather all available evidence: If your address received a high risk score by mistake or due to misunderstanding, collect all possible evidence about the origin of the funds and conducted transactions.

Maintain transparency in communication with exchanges: If you need to deposit "dirty" funds onto an exchange, be prepared to provide all the collected evidence and undergo thorough verification.

How to decide whether to trust?

It is strongly recommended for ordinary users to conduct AML checks on their counterparties and received transactions for connections to illegal activities. Thus, you not only demonstrate vigilance, reducing the risk of blocking your funds or being suspected, but also prevent the legalization of illegal funds through your account.

Remember, a correct and responsible approach to "dirty" cryptocurrency can help avoid serious problems and maintain your reputation as a law-abiding participant in the cryptocurrency market, as well as protect you from losing funds.