Crypto Question

Once the original wallet is identified and it is being tracked I don’t know how you could transfer those funds to other wallets that will also be traced. Maybe there is bank in the Cayman’s or Tortola that will do a transfers from digital to physical. Going non KYC from digital to physical seems like the only way to break the digital chain and will have to be done in a sovereign nation that won’t cooperate with Canada.

It is a good question and look forward to some other ideas.

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Also who do you like for wallets?

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I mostly use MetaMask because it works well in the defi space. I use ledger as my hard wallet.

If you find someone willing to take funds in crypto under the table, there is nothing can be done about it. Peer to peer transactions on the Bitcoin network are out of the scope of what the government can realistically stop without some fairly extreme measures. However, if these blacklisted wallets need access to a fiat off ramp, what they would likely need to do is to transfer your funds to a non-KYC compliant exchange like CoinEx or KuCoin which you’ll need to access with a VPN and cash out there.

You could also send Bitcoin through what is called a Bitcoin tumbler (e.g Coinjoin) which breaks the transactions up into many smaller transactions and routes them through complex chains of transactions where they are mixed with other peoples coins before going to the destinations so that the waters are really murky as to who you actually sent the funds to. Kind of similar to how VPN ensures privacy for accessing websites, just with transferring money. Once the funds arrive in the destination, it’s possible they are considered entirely washed by exchanges but certainly not a guarantee.

If I found myself in the position of needing fiat and my wallet addresses were known and blacklisted by all major exchanges, I’d probably use a tumbler and keep them in cold storage just with a new address and then use a non-KYC exchange to transfer to stablecoins, transfer back to an exchange with my bank account and liquidate. Not all at once either, I’d want to see that this worked without setting off any red flags with a small amount before committing the whole thing.

Sounds like a lot but it really isn’t.

This is a good tutorial if you want to interact with the blockchain directly without a wallet frontend GUI and just interact with the blockchain explorer directly.

LINK