Bitcoin mixers are services that mix bitcoin (BTC) from different sources, usually to obscure their transaction history. If many people use a particular mixing service, it becomes increasingly difficult for an outsider to tie any of the incoming coins to any of the outgoing coins—like a complicated spaghetti bowl. This breaks the transaction trail, offering privacy to the users. Of course, there are legitimate reasons Bitcoin users might want to do this. Just like encrypted email, users have the right to keep their data secure without being labeled a criminal. Using these services, users can protect their privacy and keep curious eyes from assessing the history of their funds or other information that might restrict their use of a platform. For instance, the revelation that a user holds a large amount of funds might make them a target of theft, scam, audit, random, or worse. Or those living under fragile government regimes, people might want to ensure that their financial activity is free from censure or seizure. Bitcoin addresses are pseudonymous. However, bitcoin mixers and privacy coins are quickly becoming a target for regulatory bodies. While crypto trades don't reveal the real-world identity of their owners, they act like digital footprints. The most sophisticated blockchain analysis firms are now capable of connecting the dots between user BTC wallets and real-life identities using data from exchanges like Coinbase, Binance, Kraken. Analysis firm Chainalysis announced it doubled Q3 revenue thanks to a spike in interest from U.S. regulatory agencies like the Internal Revenue Service (IRS) who offered up to $625,000 in July for new tools to track and "crack" privacy coins like Monero and other blockchain projects like Bitcoin Lightning Network. Monero is a digital currency that is secure, private, and untraceable, according to their website. Unlike Bitcoin, Monero does not have a public blockchain, making it not possible for Chainalysis to track... for now.