Bitcoin Fog - Definition from the Hotspot Shield Encyclopedia
Bitcoin fog is a form of Bitcoin Tumbler service that allows a user to mix their own Bitcoins in with other users Bitcoins in a wallet to provide a level of anonymity and to prevent the source of that users Bitcoins from being traced back to them.
Bitcoin Fog was embroiled in a Tor marketplace theft incident in 2013 - A user exploited a vulnerability in the anonymous marketplace called Sheep Marketplace and used this to steal Bitcoins worth an estimated $6 million. As it transpired, the user tried to launder their Bitcoins using the Bitcoin Fog service and distribute them elsewhere to avoid persecution. A similar incident occurred again in 2015 when around 7000 Bitcoins were stole from a Chinese digital currency exchange, and the coins were traced back to Bitcoin Fog.
Download Hotspot Shield VPN. It’s Free!
Join over 650 million users already enjoying absolute Internet Freedom around the world by downloading Hotspot Shield VPN.