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Possible way to recombine doxxic change with CJ'ed UTXOs & maintain anonymity?
110 sats \ 3 comments \ @jacob 11 Jul 2022 bitcoin freebie
Wondering how everyone whose CJ'ing is handling their doxxic change? This gave me a good starting point for options to consider.
Then I read this, and it made me think that could be a way to recombine all assets post CJ. Flow would look something like this.
  1. Send postmix UTXO's to cold storage.
  2. Send doxxic change to Breez, then to Muun via lightning.
  3. From Muun, send onchain to same cold storage as postmix bitcoin.
Since you get a new set of UTXO's out of the submarine swap, then there wouldn't be any privacy concerns about holding them with the CJ'ed UTXO's, right?
Seems like a lot of work for what should be a small amount of bitcoin, so don't know how practical it is, but in theory is my line of thinking correct?
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1 sat \ 2 replies \ @Spartan 11 Jul 2022
In theory, your method works but privacy is so nuanced that there are sure to be holes. You can also combine and CJ the doxxic change right from the wallet if you want, but there are tradeoffs to that as well, and is not recommended.
Personally, I either send the sats to my Phoenix wallet or put them into one of my decoy wallets that sit on my seed phrase base to add plausible deniability in a $5 wrench attack.
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5 sats \ 1 reply \ @jacob OP 11 Jul 2022 freebie
For sure, I guess that's why I posted, to see what holes there are in the nuance. I am not technically adept enough to understand them.
Isn't combining the CJ & doxxic number one no-no? You basically undo all of the forward privacy/anon by doing that.
I like the second option. You'd lose a small amount of sats but not more than that.
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1 sat \ 0 replies \ @Spartan 11 Jul 2022
Yes its pretty much a no-no to consolidate and CJ the doxxic change. Which is why I just put it to other uses or pop it in a lightning channel to gain at least moderate spending privacy.
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