What About Mixers?

You may be wondering about cryptocurrency mixing services and whether they could help if your wallet has a high AML (Anti-Money Laundering) score.

If your wallet has a score of 0–25% it is clean and has a high probability of being accepted by exchange APIs. If it has a score of 25–60% it is at medium risk and has had possible interaction with risky sources (P2P or gambling). If it has a score of 60% or higher it is high risk and sending funds from this wallet to an exchange or swap service will likely result in the funds being frozen.

What Are Cryptocurrency Mixers?

Cryptocurrency mixers, also known as tumblers, are services designed to enhance transaction privacy by obscuring the connection between sender and receiver addresses. They work by pooling cryptocurrencies from multiple users and redistributing them to destination addresses, making it difficult to trace the original source of funds.

Why People Consider Using Mixers

Users with high AML scores on their wallets sometimes explore mixing services in an attempt to:

Improve their wallet's AML risk assessment
Reduce the likelihood of frozen transactions
Increase transaction privacy
Separate funds from previous transaction history

⚠️ Important Disclaimer

Juno Swap cannot and does not recommend that users attempt to use cryptocurrency mixing services.

We cannot confirm whether using a mixer before swapping will or will not help improve your wallet's AML status or prevent transaction freezing.

Important Considerations

Before considering any privacy-enhancing service, users should be aware of several important factors:

Legal and Regulatory Concerns

Mixing services may be subject to different legal interpretations in various jurisdictions
Some regions have specific regulations regarding transaction obfuscation
Use of such services may raise additional compliance questions with exchanges and financial institutions
Always consult with legal professionals regarding the laws in your jurisdiction

Technical Uncertainties

There is no guarantee that using a mixer will improve your wallet's AML score
Some AML detection systems may flag addresses that have interacted with known mixing services
The effectiveness varies depending on the specific AML scoring algorithm being used
Mixed funds may still retain some level of traceability through advanced blockchain analysis

Service Risks

Mixing services control your funds during the mixing process
Some services may be unreliable or fraudulent
There's a risk of losing funds to exit scams or service failures
Service fees can be substantial

Warning

If your transaction gets frozen by the swap API due to AML concerns, it will not be able to be retrieved, regardless of whether you used a mixing service or not. The best approach (although not 100% guaranteed) is to try to verify your wallet's AML score using the recommended checking tools before initiating any swap, and only proceed if you are confident in your wallet's compliance status.

Alternative Approaches

Instead of relying on mixing services, consider these alternatives:

Use a fresh wallet with no transaction history
Obtain cryptocurrency through compliant, regulated exchanges
Verify your wallet's AML score before swapping using the recommended tools
Maintain transparent transaction records for your own compliance
Consult with legal and financial advisors about proper crypto handling

Questions?

If you have questions about AML scores, transaction risks, or Juno Swap's policies, please contact us.

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