TL;DR: “Bitcoin Blender is shutting down. Please withdraw,” came the terse post on a Bitcointalk forum. Rather suddenly after half a decade, the bitcoin core (BTC) mixing service is going offline, leaving users to theorize as to motives. It does come, however, after a seemingly unrelated international European law enforcement action seized servers from another coin mixing service, BestMixer.io just days prior.
Bitcoin Blender Coin Mixing Service Voluntarily Shuts Down
In less than as many weeks, two cryptocurrency mixing services have shut down: one by law enforcement, the other reportedly by their own hand, perhaps hoping to avoid what some are calling inevitable. At the very least, the Tor server facilitating Bitcoin Blender appears to be offline, while its BitBlender.io remains accessible for basic information.
There, the service is described as “a Tor hidden service that uses smart technology to erase your Bitcoin history and make your transactions 100% anonymous. Bitcoin Blender completely removes any connection you have with the coins you buy or sell, meaning nobody can use Blockchain Analysis to track you down. You do not need to give away any personal information to use Bitcoin Blender – simply send us your old coins, and exchange them for new.”
Sifting through Bitcointalk forums produced some interesting complaints from about a month ago. One poster explained, “I deposited coins into this mixer last night. I logged back into the account. My account was different. I added a new deposit account with the button. It crested a new address. I sent coins. When I logged back into the account. That address was gone. Now this dude is saying The address I send the coins to isn’t a bit blender address. WTF Where is my money?”
Shutting Down After Five Years
Yet another commenter pointed to a 2017 undergraduate paper claiming to have foiled a mixing service as reason enough to drop their general usage altogether. “Our implementation is going to deanonymize transactions which priorly have been anonymized by coinmixer.se. We are going to analyze different attacking scenarios and create an attack which could be able to attack most of the known centralized mixing services,” author Felix Maduakor insisted.
The May 27th, 2019 announcement to shut down Bitcoin Blender completely was met by posters with more questions than answers. “Holy…Does this have anything to do with the recent hunt against some mixers by government agencies and the fall of BestMixer?” one asked immediately. “This is pretty bad if they’re shutting down after five years mere days after bestmixer’s shutdown,” another wondered. “If I had to guess they had some loose ends as mentioned above, or their hosting service is no longer OK with being associated with them.”
More commenters and posters complained about having significant amounts of funds still tied to the Bitcoin Blender service, and that they hadn’t known about its shutting down before they could withdraw. Supposedly, a direct message was sent by Bitcoin Blender on the 30th of May to an inquirer, “Im in the process of wiping servers but brought it online now, it will be on for a few hours.”
DISCLOSURE: The author holds cryptocurrency as part of his financial portfolio, including BCH.
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