Consolidating UTXOs from KYC exchanges is never good for privacy.
Off course the Exchange (and the government) already knows those UTXOs belong to you but by consolidating you basically let the whole world know those UTXOs belong to a single person.
If the the UTXOs are smaller than 1 Million sats it makes sense to consolidate, higher I would not consolidate. Moving them (separate transactions over time) to other wallets makes sense , moving them into Lightning Channels by using a submarine swap is better for privacy.
Alternatively you can swap into Liquid than swap to lighting and once you have enough you swap back on chain with big UTXOs
Cerebrum /
npub1c7…c556d
2025-04-10 08:42:34
in reply to nevent1q…fwxe
Author Public Key
npub1c74f0h890fhhl2lqkg63wtlwapj0zy4kd7qznudkndrkcrgjeqgqlc556dSeen on
wss://relay.nostr.band/npub10vu5jqhw4kurwzf37xgr6qzkj4z7ssgnld4qjc6xv3mrhc3jqzwqnm4qs4wss://relay.nostr.bandPublished at
2025-04-10 08:42:34Event JSON
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"pubkey": "c7aa97dce57a6f7fabe0b235172feee864f112b66f8029f1b69b476c0d12c810",
"created_at": 1744274554,
"kind": 1,
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"content": "Consolidating UTXOs from KYC exchanges is never good for privacy. \n\nOff course the Exchange (and the government) already knows those UTXOs belong to you but by consolidating you basically let the whole world know those UTXOs belong to a single person.\n\nIf the the UTXOs are smaller than 1 Million sats it makes sense to consolidate, higher I would not consolidate. Moving them (separate transactions over time) to other wallets makes sense , moving them into Lightning Channels by using a submarine swap is better for privacy. \n\nAlternatively you can swap into Liquid than swap to lighting and once you have enough you swap back on chain with big UTXOs",
"sig": "3e03a0a3f3aa53d7faccece52f76897a5ff4be72180a95dc1a568697c911fce20c1d1546ce9d989bd47e22fd9489b2ce7d187cf4dd613f9c892da13ac38971a0"
}