Mixers & Tumblers

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Overview

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How Mixers Work

1. Deposit: User sends crypto to mixer
2. Pooling: Funds are combined with others
3. Redistribution: Different coins returned to user
4. Obfuscation: Original transaction trail is broken

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Types of Mixers

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Centralized Mixers

• Operated by a single entity
• Require trust in the operator
• Examples: Historical services (many now defunct)

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Decentralized Mixers

• Smart contract-based
• No central operator
• Example: Tornado Cash (sanctioned by OFAC)

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Cross-Chain Bridges

• Move funds between blockchains
• Can obscure origin of funds
• Examples: Various bridge protocols

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Detection Indicators

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Regulatory Context

• OFAC Sanctions: Tornado Cash was sanctioned in August 2022
• Exchange Compliance: Most exchanges block mixer-associated funds
• Legal Risk: Using mixers with illicit funds is money laundering

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API Example

curl -X GET "https://api.webacy.com/addresses/0x123...?chain=eth" \
  -H "x-api-key: YOUR_API_KEY"

{
  "overallRisk": 85.0,
  "issues": [
    {
      "tag": "associated_mixer",
      "severity": "medium",
      "description": "Address has transacted with known mixer services"
    }
  ]
}

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Risk Assessment

1. Direct usage: Highest risk - address directly used mixer
2. One hop away: High risk - received funds from mixer user
3. Two+ hops: Lower but still flagged - contaminated funds
4. Timing: Recent mixer use is higher risk than historical