BlockFi CEO Confirms Flagging CoinJoin Deposits

BlockFi CoinJoin Flagged

Reports started cirulating that BlockFi users were having their accounts flagged if their deposits had recent coinjoin history:

Have received multiple reports that @TheRealBlockFi is flagging deposits with coinjoin history. Majority of flags have been for utxos that interacted with Wasabi’s fixed fee address which has since been removed.

Either way expect this to continue. Not your keys, not your coins.

– ODELL (@matt_odell) 2 Mar 2020

The CEO of BlockFi later tweeted in a difcerent thread that coinjoining is part of the company’s “prohibited activities”, and they partner with companies like Chainalysis to police these prohibited activities:

It’s prohibited activity and we reserve the right to freeze / return deposits from mixing there something specific you want us to be more transparent about? We don’t have a choice based on how we are regulated.

– Zac Prince (@BlockFiZac) 2 Mar 2020

Other users pointed out that coinjoining is not considered illegal nor is even suspicious by itself, but that it does harm the business model of companies like Chainalysis:

You’re following regulations that don’t exist. Coinjoin is not illegal, nor is it suspicious without more evidence of the same.

Chainalysis has convinced you to pay them to solve problems they created for you and pushed on our industry.

Please reconsider your position.

– Rafael Yakobi, Esq. (@Deliver8tor) 2 Mar 2020



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