create two new cold storage wallets.

load the old cold storage into a hot wallet.

move out the noKYC utxos one by one to the new cold, waiting a random amount of time between each transfer.

wait a week or two.

move the KYCed utxos to the other.

or better yet, sell them back to the exchange and buy noKYC.

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No advise on trying to mix the BTC?

check out joinmarket or joinstr.xyz

but its really difficult to evaluate what privacy guarantees you're getting

or you could swap into LN or Monero and swap back out to a different wallet.

which is vulnerable to timing and amount analysis, so you have to do random amounts at random times....

it depends what your threat model is and who you are trying to remain private from 😕

When you say two wallets, do you mean two separate seed phrases, or two separate BIP-44 “accounts” owned by the same seed? And why do this instead of just doing coin control?

I wouldn't just do coin control because you ABSOLUTELY do not want to fuck it up and connect your KYC and noKYC stacks.

too easy to make a mistake.

Separate bip44 wallets should be ok if you have a good UI to handle it. Ive never used it. tbh I'd just install Sparrow and use two completely separate seeds with different signing devices.

but since most mistakes happen due to user error, it's better to use tools you are comfortable with.

The pro in my mind of doing two bip-44 “accounts” is then it’s only 1 seed to store instead of 2.

Bruh just buy 2 new cold cards n keep the kyc and non kyc stacks completely separate

Bruh they cost like $240 which is a lot of sats bro. The technology exists to keep them separate with one seed phrase, why wouldn’t I?

240 is chump change when talking about storing bitcoin

Right. I still don’t get why I would want to store two seed phrases when I could just store one? Larger attack surface, more to lose, etc.

Don’t take the advice of someone who’s have been involved with bitcoin longer than you.