"Clean coins" auctioned off like this go straight back into the mixer industry.

If the government thinks that they are doing a great job by raising money from the proceeds of taken-down privacy services then they are horribly wrong.

Similar exchange launched after eXch shutdown, but so far they didn't get enough volume and trust from community.

Does anyone know if eXch coins are still owned by them, or some government confiscated them partially or totally?
I can't remember what happened exactly.

It's hard to know, as we don't even know all the addresses used by eXch. But from what we have recorded, one of the last major movements made from eXch addresses was to this one:
https://mempool.space/pt/address/bc1qcatv4gxq24z8hwt67sftjlnlm6dxnk04saz5zw

Now, who this is, and where the BTC received went, is unknown...

It's happening. Coins from self-custody are basically treated by exchanges like deposits of cash are treated by banks. If you actually use bitcoin as intended, as a currency, then you are bound to have tainted coins, and it's inevitable that you will have issues with exchanges.

The lack of fungibility is a real problem.

There are still many good alternatives, where you can simply exchange any btc for stablecoins without kyc/aml. For now, i like to use Hyperliquid but there are many other good ones.

And stablecoins are 100% safe to send to any exchange,  if you ever need.

For those who like the technology and understand how bitcoin and cryptos work, it is still very easy to spend any coin.

Yeah, i know they are custodial service.

Just like exch or any other service.

Every time you send bitcoin , those coins can be frozen.

In my situation , they accepted many coins that were refused by other services.

I think people from bitcointalk could benefit a lot from hyperliquid. It is way better than 99% of the exchanges that advertise here. I think even 100% lol

There is no way you can convert or exchange your bitcoin without losing the custody of your coins. Even BISQ has some kind of trust involved.

I think the problem with such an idealist vision is that the way you put it there is no alternative. You just condemn everything and everyone, and you put the good and the bad in the same basket. Ofc hyperlliquid is not equally dangerous as binance or changelly, for example. You can send coins with high AML and no questions will be asked, and no funds will be frozen.

I did a little research, and the only frozen funds related to hyperliquid I found were related to some shitcoin exploit/hack. Maybe you can find something about frozen btc in different situations (which I didn't), but it is highly unlikely that they will freeze funds using policies similar to Binance, Changelly, or other common swap services.

They will probably have to change their policies in the future, as it was already suggested by LoyceV in past, that services like that get too much attention and get seized or they start playing by "the rules". But that is not the case yet.

Fungibility isn't a state of mind when you can get "scammed" by buying tainted coins.


Hyperliquid just locking accounts and saying "tough luck" is a serious issue. It would be one thing to just send the funds back to the user and another thing to require further verification. But, it sounds like they just freeze funds and keep them essentially, which I would classify as a scam.

Yes.

Supposedly, the US government regularly sends money to criminal gangs all the time (via the CIA) which then becomes dirty, then once the cops seize the assets of those criminals and move it to a bank account then magically it becomes "clean".

If you want to get clean currency all the time, just work for the government. But not at an internship.