Although cryptocurrencies were created for anonymous use, nowadays, in fact, all transactions made by any wallet can be reviewed. Mixers – or tumblers, as they’re also known – increase anonymity.
Most cryptocurrency transactions are recorded on the blockchain, where the movement of funds from one wallet address to another is recorded and visible to all. Cryptocurrency mixers aim to make it harder to trace individual transactions by mixing the original funds with other funds, resulting in an amalgamated deposit that is harder to trace.
How it works?
For example, the bitcoin owner transfers the money to the mixing service, which blends it with that of other users and transfers to the desired address, meaning there is no connection between the original transaction and this address. The transaction amounts can be chosen at random so that the transaction is made up of many small partial payments spread over a longer period of time.
Though crypto mixers are not inherently illegal, they are often used by criminals; for example, to launder stolen money. According to a July report from Chainalysis, cryptocurrency mixers are a “go-to tool for cybercriminals dealing in cryptocurrency” and illicit addresses account for nearly a quarter of funds sent to mixers.