What Is a Crypto Mixer?

The mixer mechanic explained - and why its addresses are red flags.

TL;DR

TL;DR: A crypto mixer (tumbler) pools and re-splits funds to obscure their origin. The same mechanism behind Tornado Cash, Blender.io, and Sinbad - all OFAC-designated. Mixer addresses on the SDN list are blocked.

The mechanism

Users deposit funds into a pool; the mixer re-splits them into fresh outputs, breaking the on-chain link between sender and recipient.

The designations

Tornado Cash (Aug 2022), Blender.io (May 2022), Sinbad (Nov 2023) - each designated with their addresses on the wallet list. Interacting with a designated mixer is prohibited.

The red flag

Mixer-funded inflows and mixer-routed payments are a classic screening red flag - the payment red flags cover the set.