[Bsims]

I've seen a few posts indicating that places like Coinbase will ban you if you are transferring funds with a gambling site. All transactions are sent to a bitcoin address that has been randomly generated. How do they know it's a gambling site?

[Optional]

I have not heard of them banning anyone in quite a while. Maybe they can't since everyone started using new addresses for each transaction.

Still, no point in flouting their rules when it's easy to not send direct.

[PaperTrail07]

It would take them a lot of work to figure it out.....I still use the middle but in reality agree w you

I have not heard of them banning anyone in quite a while. Maybe they can't since everyone started using new addresses for each transaction.

Still, no point in flouting their rules when it's easy to not send direct.

[TheMoneyShot]

I've seen a few posts indicating that places like Coinbase will ban you if you are transferring funds with a gambling site. All transactions are sent to a bitcoin address that has been randomly generated. How do they know it's a gambling site?

In my opinion I believe Coinbase secretly tracks coins purchased from them... and sent directly to these "generated addresses" produced by these books. I also believe these addresses are either "repeated" and/or funds are sent to a sportsbook's "hot wallet". I'm not a bitcoin guru... probably way below average.

But something is tipping them off. Let's face it... Coinbase is extremely popular... and it doesn't take much of a screw up for someone to send directly from Coinbase to a book.

Somehow sending the coins purchased from Coinbase to either block chain or exchange... then to book somehow screws up the chain. They can't pinpoint exactly what you did with the bitcoin.

[themike78]

This is a great question. I've always wondered how in the hell they know it's going to a gambling site. They must have some super geniouses working there studying the transactions or something. It would be nice if coinbase would focus more on customer service. It takes 30 days to get a reply from an email.

[timinator]

It is because they generate multiple addresses at a given time for deposits and once the blockchain sees the pattern it is fairly easy to determine where the coins are going.

Just get a Local Bitcoin Exchange account as a middle and don't worry about it. There is a small fee for the transfers but worth the privacy...

[Optional]

I think originally they would identify books major wallets where they consolidated bitcoin through traditional means and then tracked anything that ended up there backwards. If it came from Coinbase they would ask the user and obtain more information to confirm the book connection.

If a user simply said there they were using bitcoin for something else and there was a level of plausibility to that claim shown in the transfer route then the account remained open.


Not sure if they have stopped doing that as much or, as the OP suggests, changes to the network usage and setup have made that system unworkable now.

[littlekona]

its easy if Optional can track down raider he knows.. he posted a link a while back that showed site once you entered in BTC address... I tried it and sure enough it worked showed up Nitrogen which was right...I will look and see if I can find if not Raiders can re post if hes around

[ace7550]

You could just not use Coinbase. There are a lot of other excellent options. Itbit and Kraken to name a couple. Coinbase has virtually zero customer service and will hold funds for a week if they feel like it. Itbit's wires are same day and if you have a question they respond same day too.