Topic: Stolen Bitcoins (Read 1175 times)

This is what I was refering to when I had suggested there are merchants who will blacklist (more appropriately called deny service as in DOS) in the freenode IRC (as NaruFGT).

As I said multiple times before, this is in the long run, ineffective. It only matters because for some theft, it will incur latency and overhead for the person trying to spend those coins.

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http://www.bitcoinfog.com/ lol small fee

It is impossible to reject coins under circumstances except double-spending (ie, trying to re-spend a coin that you already spent and no longer own), or rather, it is impossible to prevent other people from sending coins (regardless of their origin) to you. All proposols to prevent "tainted" bitcoins from circulating fall down on this point.

For example, suppose you receive a bitcoin that you believe to be stolen. What then? You can't keep it while refusing to accept it as payment as you would with a counterfiet $100 bill, since the bitcoin in question is provably not counterfeit and absolutely genuine in every way. You also can't send it back since it is impossible to know whether the sending address actually belongs to the person to sent it (if they were using an online wallet for example, the address would belong to wallet provider, and not the individual who sent the coins). There is literally nothing you can do about it except accept the tainted bitcoin as valid payment.

It's true.  You can transfer bitcoins to an address and nobody can prevent it.  Neither that address nor it's owner nor the whole bitcoin network can prevent the transfer.  Even if the address doesn't exist you can force bitcoins to it.  In that case the bitcoins become lost, never to be transferred again.

Let me repeat: Any Bitcoin transaction virtually can't be stopped or blocked.

That isnt why I am asking.  I am asking because if there is a mechanism to reject bitcoins, and that mechanism is controlled by popular vote or whatever, the bitcoins are useless as a non-centralized currency.

This is not true at all. Somebody made fun from You.Some businesses are known in some time in past to keep and not release coins they consider "tainted". Mt.Gox are prime example on this. And there are nolifers who follow transactions down to blockchain wasting their time in a hope to catch the thief.

If You need assistance for properly laundering your coins so they will be accepted as clean by all exchanges then I will do it for very small fee.

There is no such thing as stolen bitcoins. There are only allegedly stolen bitcoins and even those are not so anymore after a few transactions because it's impossible to know if they are still in the hands of the alleged thief.

Another question then: 

Are there bitcoin based businesses out there that reject stolen bitcoins?  Are they like blackmarked?

Quantum

Thanks for the answers. 

Any Bitcoin transaction virtually can't be stopped or blocked.

Completely false

Can somebody enlighten me here:

I have heard that stolen bitcoins are not allowed to process further in the blockchain, i.e. they are rejected.  Is this true, or ring true for anybody?

Quantum