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One huge Ethereum mixer controls 65% of the total volume of transactions

A group of experienced analysts began evaluating how much and where ETH transactions were being processed. What they found was a surprise.

24.Sep.17 12:36 PM
By Daria Zaytseva


One huge Ethereum mixer controls 65% of the total volume of transactions

According to the analysis, more than 65 percent of all ETH transactions are generated using temporary addresses. In other words, the funds go to the address and again leave the address, usually within an hour, and the addresses are never used again.

The finding, on the cyberFund blog, indicates that the "Ethereum mixer" is transfering funds to temporary addresses, mixing them from the address to the address and then outputting them to more fixed addresses on different exchanges.

The problem with these transactions is that they represent a significant part of all Ethereum transactions, which indicates that the funds are moving quickly, and for what purposes it is not clear. The analysis showed that at least one of the following options should be fair for the mixer.

1. The protection offered to clients by crypto-exchanges: all customer funds are mixed, so sources of funds cannot be tracked, and those who hold clean money cannot be unreasonably accused of any illegal activity.

2. A mechanism has been created to protect US residents who want to avoid control by US regulators.

3. The mechanism used by a large private exchange to maintain the confidentiality of its customers; this exchange might be operating with fiat money.

4. The mechanism used to secure the transfer of crypto-assets between crypto-exchanges.

5. Any kind of Ethereum-laundering scheme.

Which of these options is actually the goal remains to be seen. However, if such a large volume of transactions is being carried out by a single mechanism, it casts doubt on the growth of the Ethereum market and its actual use.

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