A crypto mixer, also known as a tumbler, scrambler or shuffler, is a service that obfuscates the link between your input and output bitcoin addresses. To do so, you send your cryptocurrency to the mixer, and then it mixes it with other users’ coins in a pool and redistributes them to many different output addresses.
Then, after a set amount of time, the mixer sends you your resulting bitcoins in a new batch, which is usually divided into several smaller units for additional privacy. In exchange for this service, the mixer takes a fee, which is generally 1-3 % of the total sum of all the mixed transactions.
While some people use crypto mixers to illegally launder money, they are primarily legitimate tools for individuals who want to enhance their privacy. This is especially true for citizens of countries with oppressive regimes, where openly outspoken journalists and members of opposition parties could be at risk if their transaction history is traceable in the blockchain.
Using mixers isn’t necessarily illegal, but they are often associated with money laundering and have been subject to shutdowns by the U.S. Treasury’s Financial Crimes Enforcement Network and other regulators. Additionally, because centralized mixers don’t operate on a borderless peer-to-peer protocol like Samourai Wallet and Wasabi Wallet, they require trust in a third party and can expose you to hacker attacks or malicious intent from the mixer itself. This is why decentralized mixers are a much more trustworthy solution. cryptomixer