Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you should not expect to be protected if something goes wrong.

Using Your CoinJar Wallet for Illegal Purchases Will Get You Banned (And How We Know)

If you use CoinJar to dabble in illegal activities then you will be kicked off the platform and reported. Here's how we know.

In this article...

  • Some crypto enthusiasts use crypto to buy illegal items
  • These can include banned substances and illegal exploitation material online
  • This will get you banned and reported to the authorities.
why am I banned from CoinJar.

If a customer on CoinJar thinks cryptocurrency transactions are anonymous and untraceable, they are living in 2010. The reality is that blockchain technology means that everything is recorded on the blockchain, potentially forever.

If CoinJar customers try to transfer funds into a nefarious wallet to buy illegal items, this will trigger an alert, which will get the customer kicked off the CoinJar platform. And by illegal, we mean the usual suspects: Illicit substances or items, or illegal materials of an exploitative nature.

The Reality of Blockchain Transparency

A common myth is that cryptocurrency is anonymous. It's pseudonymous at best, and increasingly, it's completely traceable.

Think of blockchain like a giant public ledger that records every single transaction ever made. It's like having your bank statement published on a billboard that everyone can read – except instead of showing "John Smith," it shows a wallet address like "1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa."

The problem? Once anyone connects your real identity to that wallet address (which happens the moment you your account with CoinJar), every transaction you've ever made becomes traceable back to you.

How Blockchain Tracking Actually Works

Imagine if every banknote had a unique serial number, and every time you spent it, someone wrote down:

-Which serial number went where

-What time the transaction happened

-Who received it

-The exact amount.

That's essentially how blockchain works, except it's all automated and publicly visible forever.

Professional blockchain analysis companies like have built massive databases that track millions of wallet addresses. They know which addresses belong to:

-Cryptocurrency exchanges (like us)

-Known drug dealers and marketplaces

-Money launderers

-Terrorist organisations

-Ransomware operators

-Other criminal enterprises.

When you send crypto from your verified CoinJar wallet to one of these flagged addresses, it's like sending a letter with your return address to a known criminal's house – except this letter is recorded in a public database forever.

CoinJar's Transaction Monitoring System

Here’s what you need to know. We are legally required to monitor transactions in order to flag any suspected criminal activity under anti-money laundering laws and international regulations.

Here's how it works:

Real-Time Monitoring

Every single transaction that flows through CoinJar is automatically checked against Blockchain Analysis databases (such as Chainalysis). When you send cryptocurrency from your CoinJar wallet, our systems flag transactions to known criminal addresses.

This means the customer account is suspended for investigation. Our compliance team reviews the case and if illegal activity is confirmed, the account is permanently closed.

We Know More Than You Think

Chainalysis doesn't just track individual wallet addresses. They track entire networks of connected addresses, mixing services, and transaction patterns. Even if you think you're being clever by sending your crypto through multiple wallets or mixing services, professional-grade blockchain analysis can often trace funds back to their origin.

What Happens When You Break the Rules

Let's be crystal clear about the consequences:

Immediate Account Suspension

The moment our systems detect a transaction to a flagged address, your account is locked. No warnings, no second chances, no "I didn't know" excuses.

Permanent Ban

If our investigation confirms you've used CoinJar to fund, or receive funds from illegal activities, you're banned for life. This includes:

-Purchasing drugs or other illegal substances

-Funding terrorist organisations

-Money laundering

-Any other illegal activity

Legal Consequences

We're legally obligated to report suspicious transactions. Depending on the nature of your transaction, this could lead to:

-Criminal investigation

-Asset forfeiture

-Prosecution

-No Refunds

Any funds remaining in your account may be frozen as part of the investigation. Don't expect to get your money back.

Staying Safe and Compliant

The good news? Staying on the right side of the law is actually really simple: Only use crypto for legal purposes.

Red Flags to Avoid

Never send crypto from your CoinJar wallet to:

-Dark web marketplaces

  • drug dealers or suppliers, including unprescribed pharmaceuticals

-Buy products or services of dubious origin (like unusually cheap software)

-Mixing services

-Addresses associated with ransomware

-Anyone asking you to pay for illegal services.

When in Doubt, Don't

If you're not 100% certain that what you're doing is legal, don't do it. The transparency of blockchain means there's no such thing as "getting away with it" – it's all recorded forever.

The Bottom Line

Cryptocurrency has evolved far beyond the "digital Wild West" reputation it once had. Today's blockchain networks are sophisticated, transparent, and closely monitored by both private companies and government agencies worldwide.

We're not trying to be the fun police – we're trying to build a legitimate, regulated cryptocurrency platform that serves our community responsibly. That means we have zero tolerance for illegal activity.

Remember: The blockchain never forgets.

coinjar author, best crypto exchange
CoinJarCoinJar is one of the longest-running cryptocurrency exchanges in the world. Since 2013, we’ve helped hundreds of thousands of people worldwide to buy, sell and spend billions of dollars in Bitcoin, Ethereum and dozens of other cryptocurrencies.

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Standard Risk Warning The above article is not to be read as investment, legal or tax advice and it takes no account of particular personal or market circumstances;

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Your information is handled in accordance with CoinJar’s .

Cryptoassets traded on CoinJar UK Limited are largely unregulated in the UK, and you are unable to access the Financial Service Compensation Scheme or the Financial Ombudsman Service.

We use third party banking, safekeeping and payment providers, and the failure of any of these providers could also lead to a loss of your assets. We recommend you obtain financial advice before making a decision to use your credit card to purchase cryptoassets or to invest in cryptoassets. Capital Gains Tax may be payable on profits.

CoinJar’s digital currency exchange services are operated in the UK by CoinJar UK Limited (company number 8905988), registered by the Financial Conduct Authority as a Cryptoasset Exchange Provider and Custodian Wallet Provider in the United Kingdom under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as amended (Firm Reference No. 928767).

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