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When a payment processor, under pressure from partner banks and Mastercard, cut all ties with Bitcoin companies, leaving customer funds stranded, it was BitInstant that hacked together a solution to let them withdraw their money.

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Originally known as Darkcoin because it promised untraceable transactions, it saw plenty of pumping and dumping.But one person who declined to invest warned him that BitInstant had no safeguards to prevent money laundering.

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