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How Does a Coin Mixer Attempt to Restore Fungibility to Bitcoin?

Coin mixers pool and redistribute funds from multiple users to break the on-chain link between the original source and the final destination addresses.
Greeks.Live07.11.25

How Does a Coin Mixer Attempt to Restore Fungibility to Bitcoin?

A coin mixer, or tumbler, pools together the funds of many users and then redistributes the equivalent amounts randomly to new addresses. By breaking the direct link between the input and output addresses, the mixer obfuscates the transaction history of the coins.

While this process attempts to restore privacy and fungibility, it is often viewed by regulators as a tool for money laundering.

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