Topic: What happens to banned addresses? (Read 401 times)

That's not what he meant, ban address is an address that's been tagged as criminals or hackers address and many are tracking the address and once any other address share from the tagged address they will seize your fund once you try to sell on any centralized exchange, this is how many hackers are left with tagged BTC address and even if they move the fund, any next address that receives from the hackers address will also be tagged.

To cut the story short, Meaning you end up with useless Bitcoin.

Thank you for all your answers. What I've noticed is that in the end, in the threads whose questions may seem simple to some, we learn a lot of things we wouldn't have thought of initially. The levels of knowledge of the contributors are so different on the forum that it really helps to understand the issues.

You're right, for the most part, police around the world don't focus very much on "minor" offenses, and as a result, these often may not even be reported. However, if someone has lost a few satoshi from their address, then in the crypto world, as in some other digital cases, the number of those who have been subjected to the same attack can make the crime quite "big". Of course, I agree with you that we would like even more successful solving of crimes, but the trail of digital crimes is cooling down more slowly, and there are chances that the crimes of past years will still be solved.

Any BTC address can be funded, and funds from any BTC address can be spent by whosoever can prove ownership, through the private keys. This is what you must know, every other custodial terms like: banned address, tainted coins, blacklisted address, etc are not a part of the BTC protocol or network; they are terms used by centralized exchanges and pro censorship governments, and the only way they can seize your coins is if you lose control of it by sending it into a centralized exchange or cusodial service.

BTC is a p2p network, and if you exchange your coins that way, through p2p exchanges like Bisq or Agoradesk, your funds are unlikely to get seized or confiscated like in centralized exchanges and services.

What the hell are you even saying here? It sounds like you have almost no clue even how the simplest part of BTC works.

Bitcoin isn’t decentralized due to existence of private keys, you can stay out of third parties and custody without running your own node and wallets can both receive and spend as long as somebody still has ownership(seed or private keys) - there’s no way a wallet can be banned entirely off the blockchain. If you can’t spend balance anymore due to a centralized exchange seizing your coins, the exchange can still spend because they have ownership. Be even the most hated address on the blockchain - you’ll still be able to spend because of the lack of censorship.

Even though I am not technical in Bitcoin and wallet development,  I think not all wallets are bannable because I still believe that if you hold your Bitcoin in a personal wallet with you holding the private keys to that wallet,  only you have control over that wallet and that is why bitcoin is highly decentralized,  but then also u don't know if there are other ways by which the address could be ban but in the general context I believe the only way your wallet could get banned is through your usage of centralized exchange but as long as your bitcoin holding are all held in your control and for high security, you can run your nods so that you hold your bitcoin all in your custody without third-party interferences.


That is why there is a need to try as much as possible to avoid using centralized Bitcoin wallets because that is the easiest way to allow third-party control over your Bitcoin holding. if a wallet is banned it then means it won't be useable at any point and also knowing fully well that the asset therein but inherent and incoming transactions are all frozen,  the wallet may remain active on the blockchain which then means that the wallet can receive bitcoin but may not be able to send out.

Cryptocurrency and bitcoin particular is a decentralized wallet so it is not possible to ban or block the address and that is why State Governments could not do anything to that effect. All what they can do is to stop transaction of cryptocurrencies in their public offices such as: banks, schools, hospital etc. These are some of the places cryptocurrency transaction can be banned base on it that they want to regulate the transaction process or just planning to stop the transaction or cryptocurrency in their territory. And I don't think there is specific way bitcoin address can be banned. But exchange platforms can blacklist and frozen their bitcoin address in their platform and because exchange is a centralized system but the ones that decentralized can not frozen and blacklist your address because nobody is there to do that and everything there is decentralized.q

Yes scammers address functions because only them have control over it and nobody can do anything about it. Do not forget that this is blockchain and it is decentralized void of any external authority wanting to control it for you as you alone have sole authority over it unlike the centralised banking system where your bank account can be freezed at any point in time by government or other agencies because they have access to it and can call you at anytime since they know your identity.

In as much as blockchain is decentralized, CEX does not and cannot do anything unless the government through the court calls them to do their biddings. The CEX too sometimes monitor blacklisted wallets so as not to get involved with it In anyway so because that alone would call the attention of the government to them that is why they have mechanism in place to detect such wallet addresses already blacklisted for immediate forfeiture of funds transferred to their platform if the government comes knocking at their door they will have what to present to them and the identity of the account holder.

I have no seen any bitcoin address that is been restricted in exchanges, any address that is been restricted in any exchanges know that the address is under investigation and not all the exchanges will restrict the address, foe me if address is been banned know quite well that theirs a strange force behind it, but to be sincere I have not seen an address that is been ban. But come to think of it, that means if address is been ban that means address will not accept Bitcoin from any one, I need more clarification

There’s no thing such as blacklisted addresses on the Bitcoin blockchain. You can get your coins seized if a third party you’re working with decides to seize them. They’re third parties though, and it usually happens when your coins are in a third party’s custody.

Miners can exempt your address from being included in blocks, but if a miner does it while all the others don’t, it’s worthless. The best thing they can do is just make things slow down for you if they own most of the hashrate.

Don’t worry about banned addresses, this isn’t (shouldn’t) be a thing. Your coins are supposed to be free, and on the BTC blockchain they are. You can continue to do for example Bisq trades using a “blocked” address. You can switch to Monero and back, emptying the address and making it more difficult for third parties to decide who gets the next ban/suspicion.

Don’t fall for this crap, they’re trying their best to add things to BTC that Bitcoin shouldn’t have first of all.

I don't know if I can be as optimistic as you. When I look at the figures for thefts, crimes and other burglaries in France, I get the impression that if the rates of solving "simple" thefts are very low (thefts of cell phones, bicycles etc ...), it's perhaps because the police are concentrating on larger-scale thefts? But is the crypto department big enough for all the crypto scams?



Source : https://www.insee.fr/fr/statistiques/5763547?sommaire=5763633

If you follow how various government departments work to solve crimes related to cryptocurrencies, you will see that they are already savvy enough in new technologies not only to catch criminals, but also to seize illegally obtained cryptocurrencies. So the criminals get no more impunity than with other types of fraud.

Crime with cryptocurrencies initially cannot remain only in the blockchain: criminals somehow reach the victim in the real world, and the police catch them in the real world too. And then everything is tracked and proven. Sometimes this takes some time, and then it may seem that the attackers will get away with it, but often this will not be the case.

It's hard to say, but I can think of two main reasons why scammers reuse BTC addresses:

-lack of knowledge and understanding of the subject. Perhaps some people are unaware that reusing their address can harm their privacy and therefore increase the risk of being flagged.

-mixers, some of whom must not give a damn because they mix their coins regularly, thus cutting off any attempt to identify their coins.

It's also likely that some are using static websites for their scams, with their wallet address/QR code not automatically updated after each payment received. This is the case with some of the poorly designed scammer sites you see on the darknet.

Thank you for all your answers, I'm trying to understand.

Some scammers' addresses* continue to "function", i.e. to receive small or large sums of money with total impunity. Other scammers, on the other hand, will be doxxed and arrested after a CEX has given the scammer's informations (KYC).

But if a CEX is not called in by the courts, I have the impression that it won't do anything at all.

I was also thinking about blacklists of ETH addresses (see Tornado cash for example): people who own certain addresses but have done nothing illegal can no longer recover their funds?

* I also wonder why they use the same address for their scams... I guess they're aware of their impunity.

SHORT ANSWER


NO ONE CAN BAN ANY BITCOIN ADDRESS


maybe you are confusing it with tokens ? or some other blockchain ?

True banned address only banned by the "Centralized Exchange".

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as long only you have the private key the bitcoin can still be transact on-chain, and can be used on Decentralized Exchange. Mayeb you can unban by using mixing services like mixy hehehe

tho I know that some companies like Circle can ban your address in this case USDC

BLOCKED ADDRESSES & FORFEITED FUNDS
Circle reserves the right to “block” certain USDC addresses and, if such addresses are Circle custodied addresses, freeze associated USDC (temporarily or permanently) that it determines, in its sole discretion, may be associated with illegal activity or activity that otherwise violates these Terms (“Blocked Addresses”). In the event that you send USDC to a Blocked Address, or receive USDC from a Blocked Address, Circle may freeze such USDC and take steps to terminate your USDC Account. In certain circumstances, Circle may deem it necessary to report such suspected illegal activity to applicable law enforcement agencies and you may forfeit any rights associated with your USDC, including the ability to redeem USDC for USD. Circle may also be required to freeze USDC and/or surrender associated USD held in Segregated Accounts in the event it receives a legal order from a valid government authority requiring it to do so. - https://www.circle.com/en/legal/usdc-terms#:~:text=In%20the%20event%20that%20you,to%20terminate%20your%20USDC%20Account.

meaning you will not ever gonna redeem it unless you know how to mix it to smart contract who can mix without knowing by USDC team CMIIW

Well this question is very pertinent and coming from an established member here but I think a banned and blacklisted accounts are dealt with in  different ways just as a poster replied here.

Account banned or blacklisted can still transact as long as it is still onchain. As a single owned wallet it can transact with other wallets but if it transact with a CEX wallet there is every tendencies that whatever comes from the wallet would be flagged and get frozen because CEX have the mechanism to do such task.

I was so confused after reading what is being asked in the OP. Honestly, it never occurred to me that there would be any concept like banning the Bitcoin addresses. The only thing that came to my mind first is, what about decentralization then? Who is going to ban my address in an environment which is completely decentralized and runs on the public ledger? So the public? How?

Thank God, there is no such thing as banning the address. As far as the above answer is concerned I am now putting my all trust in decentralization one more time. (kidding, I never lost the trust)

However, it's good to know that this can be done in the shitcoins. They anyway deserve it considering the fact that they are platforms where scammers bloom and make thousands of dollars with scamming. More happy to know Bitcoin address is perfectly integrative.

Simple answer is, they can make transactions using the block chain technology because AFAIK, they are only labeled as black listed or summers or involved in fraudulent activities by Authorities but they can not stop them to make transactions.

I think if they will make transactions to another wallet that wallet will also be labeled as fraudulent one. This raised a question that what if they send small money to other normal legal users? I think we should ban incoming transactions from those users.

There have been many announcements made by authorities about blacklisting many addresses and you can check the transaction details of those addresses to verify either those addresses are making any transactions or not.

• US Treasury Blacklists Several More Bitcoin Addresses Allegedly Tied to Iran Ransomware Attacks

Actually, if you're using personal wallet you can transfer Btc to any other addresses even though you're using a blacklisted address. I didn't see feature from a personal wallet to be locked automatically if you deposit Btc you get from hacking or fraudulent activities. But if you're going to exchange it, especially in CEX, if there's something suspicious to your deposit address, your account will be freeze then they will check your account and your address very well before they will unfreeze your account. Even if the address you're using is tainted, there's a high chance your account will be freeze. That's why good people always use mixers just to make sure their address is clean.