Topic: Stolen coins (Read 530 times)
It's very easy to trace Bitcoins, the chain is public, even when they are washed through "tumblers" it's still very easy to track them, because they don't magically disappear, they just get mixed up making the tracking more complex. The problem with freezing or blacklisting stolen coins is that you could break the whole market, because you yourself may be in possession of stolen coins unknowingly, and so you could end up freezing a section of everyone's accounts. You'd undermine the implicit trust that exists in the market, that when you purchase a Bitcoin, you know own it, and it would cause a panic sell by everyone crashing the market. Added to that it would be impossible to enforce, because part of the beauty of Bitcoins is that they aren't policed by any central authority.
Just like most of the dollar bills in circulation are tainted with coke - eventually most bitcoins will have been involved in something regarded as illegal by someone, but that does not damage their utility. Is it not said that all proprty is theft ?
I bet most coins have a seedy past and lose their virginity pretty quick.
If there were a blacklist, and you found out that you owned tainted coins in your wallet, what would you do with them?
Bitcoins can be tracked through the network. Identifying an individual is dependent on out of network information, however. So all you peeps with a bitcoin address in your signature-beware!
An Analysis Of Anonymity
An Analysis Of Anonymity
Some cases it is clear that theft has taken place, and there have been many well documented "heists".
e.g. http://blog.bitinstant.com/blog/2013/3/4/events-of-friday-bitinstant-back-online.html
Not sure who would decide, but would you knowingly accept "stolen" coins?
There is no blacklisting in place. Problem with it would be who would decide to start blacklisting?
Just take your word after you bought the car to blacklist funds "because they were stolen"? I doubt anyone wants to allow US Court / Gov to start blacklisting peoples funds at wish?
Only way if you want to try recover funds is to follow the money-trail as long untill funds hits some known entity to ask from them who gave money for them and start following money-trail. Just expect it to be broken at some point & its easy to mix that money to quite untraceable.
Just take your word after you bought the car to blacklist funds "because they were stolen"? I doubt anyone wants to allow US Court / Gov to start blacklisting peoples funds at wish?
Only way if you want to try recover funds is to follow the money-trail as long untill funds hits some known entity to ask from them who gave money for them and start following money-trail. Just expect it to be broken at some point & its easy to mix that money to quite untraceable.
It is possible to track them, but it's irreversible so its useless.
I don't think there is some sort of blacklist but I may be wrong.
I don't think there is some sort of blacklist but I may be wrong.
When coins are stolen, is it not possible to track them through the network? If so, is there a mechanism to create a blacklist?
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