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Replying to Avatar Sjors Provoost

Which means you've now gone from one deposit that doesn't stand out much on chain, to a very obvious pattern of receiving sats from the exchange and sending them back, all using the same address. Plus your bank sees a small transaction going to an exchange and a large one coming back, which might trigger their alarm and they hold you fiat ransom too.

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Sjors Provoost 10mo ago

And of course this fiat transaction pattern tells your bank that you're a self-custodial person.

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