Tainted cryptocurrency is a concept that suggest that cryptocurrency that is associated with illicit activity is "dirty" and that it remains that way indefinitely. This commonly leads users to believe that if they receive tainted cryptocurrency, through no fault of their own, they may have the exchange accounts blocked, funds seized, or may be subject to increased scrutiny.
This can sometimes lead to people being falsely accused of having been behind a cryptocurrency theft or scam.
See our article on Tainted Bitcoin that delves into this, and the pertinent nuances involved.
