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The Coin Rise 2024-12-27 11:10:44

Bitcoin Whales Drive Surge in CoinJoin Transactions Amid Privacy Concerns

Bitcoin transactions leveraging privacy-enhancing CoinJoin technology have tripled since 2022, according to data from CryptoQuant. This increase is primarily attributed to Bitcoin whales—large holders of the cryptocurrency—ramping up their use of these transactions to transfer funds discreetly. These whales are linked to spot Bitcoin ETFs, MicroStrategy, and various custodial wallets, CryptoQuant CEO Ki Young Ju highlighted in a December 26 post on X. About CoinJoin CoinJoin is a process that obscures the ownership of unspent transaction outputs by pooling inputs and outputs from multiple participants. This method allows for greater transactional privacy, which Young Ju argued is frequently employed by institutions to shield their activities, rather than being a tool primarily for illicit purposes. He pointed to Chainalysis data , which revealed that hacking-related Bitcoin losses amounted to $2.2 billion in 2024, representing just 0.5% of Bitcoin’s $377 billion in realized cap inflows. This undermines the narrative that CoinJoin is predominantly used for money laundering. Speculation on Unknown Bitcoin Whales In addition to publicly known institutions, Young Ju noted the presence of unidentified Bitcoin whales holding approximately 420,000 BTC—valued at over $40 billion. The origin of these holdings has sparked speculation across the crypto community. Some believe these whales could represent a nation-state discreetly amassing Bitcoin reserves, while others suggest it could involve sanctioned nations attempting to bypass restrictions. Russia, for example, recently passed legislation permitting foreign trade using Bitcoin and other cryptocurrencies, fueling theories of state-level accumulation. However, the increasing use of CoinJoin has also drawn scrutiny from global law enforcement. In April, U.S. authorities arrested the founders of the privacy-centric Samourai Wallet and seized its operations . The Department of Justice alleged the wallet’s CoinJoin feature facilitated over $2 billion in illicit transactions, including $100 million linked to dark web markets like Silk Road and Hydra Market. Similarly, Dutch authorities targeted Tornado Cash , another privacy tool, detaining its creator Alexey Pertsev in 2022. Pertsev was later convicted of money laundering in May 2024, highlighting the regulatory risks associated with privacy-enhancing technologies in crypto. While CoinJoin offers major privacy benefits for legitimate users, its misuse continues to capture the attention of regulators worldwide. The post Bitcoin Whales Drive Surge in CoinJoin Transactions Amid Privacy Concerns appeared first on TheCoinrise.com .

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