Replying to Avatar Noerms

Is the Lightning Network anonymous?

For example if i send BTC from an KYC Exchange to WoS. Then send sats via lightning to another Wallet and then back on chain. Are these sats now considered non-kyc? 🤔
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Guy Swann 2y ago

It’s separated from your KYC exchange, but you have to think about every step. For example:

• WoS has your IP/device and they could be subpoenaed

• WoS also knows where the payment was sent to on LN

• Then whatever method you have for getting it on-chain needs to have extra privacy protection as well. Def need VPN or Tor to get good separation

What you *have* done is separate the on-chain trail. So Chainalysis doesn’t know shit & the only way to follow the trail is good ol’ investigative work.

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Guy Swann 2y ago

What you have obtained is potential privacy about which BTC you own. But using the KYC exchange means that the record of your purchase cannot be hidden and should be assumed is known by regulatory and govt agencies.

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Noerms 2y ago

Thanks a lot for explaining 🙏

The privacy topic would also make a good topic for another Basics episode 💪

Thanks a lot for you great work mate 🫂💜