What happens to banned addresses? - page 2.

tabas

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Quote from: Becassine on July 04, 2023, 07:33:26 PM

I have to say that there are still a lot of things I don't quite understand, although I try to read as much as I can.

For example, I don't understand what happens when an address is banned or blacklisted. Can't you move btc? Can't you do anything with satoshis on that address?

Thank you

AFAIK, no one can ban addresses but with exchanges, they can blacklist a bitcoin address or any address from other cryptos. They're doing that to control those stolen funds that's reported to them. That's part of their cooperation to whoever is reporting incidents like hacking to them.
That's gonna give the hacker a hard time if the address used for hacking is alerted to the exchanges. And if the hacker has already deposited using that blacklisted address, the fund will be on the custody of the exchange and the hacker won't be able to withdraw it.

Z390

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Quote from: Becassine on July 04, 2023, 07:33:26 PM

I have to say that there are still a lot of things I don't quite understand, although I try to read as much as I can.

For example, I don't understand what happens when an address is banned or blacklisted. Can't you move btc? Can't you do anything with Satoshis on that address?

Thank you

I hope you haven't come across anyone telling you they can exchange 1000$ worth of Bitcoin for 100$, those Bitcoins are flagged address Bitcoin, don't ever exchange any money for such Bitcoin because this sounds like you have an offer, maybe im too jumpy, if that's the case please just overlook.

I said this base on past experience, and later I found out that the Bitcoin was actually set of stolen Bitcoin, I nearly fell for the trap and it could ruined me because the offer was so tempting but too good to be good is what saved me.

Just saying, if that's not what's happening please accept my apologies.

hugeblack

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The one who adds the address to the block is miners, and therefore, unless all mining pools block your address, do not be afraid of this problem, and if that happens, all you have to do is buy many miners, mine a block, and then add your transaction in this block.

It is difficult to find a global consensus on a particular issue, and therefore it is not difficult for all mining pools to agree to ban an address, but the government that blocked your address can track your transactions and prevent you from depositing to centralized platforms or freeze your funds once deposited.

BenCodie

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Quote from: Becassine on July 04, 2023, 07:33:26 PM

I have to say that there are still a lot of things I don't quite understand, although I try to read as much as I can.

For example, I don't understand what happens when an address is banned or blacklisted. Can't you move btc? Can't you do anything with satoshis on that address?

Thank you

Blacklisted coins or banned addresses generally can't use a wide variety of services, or will be flagged if they ever touch an exchange or centralized service...leading to whatever consequence comes with the coins.

It doesn't mean the coins are worthless, it just means that there is very little chance that they can be used for anything, and that there is a lot of risk associated with sending them to people or platforms.

Technically, you should still be able to move them from wallet to wallet.

paid2

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With Bitcoin, you can't really ban an address, fortunately. However, an address can be flagged by private companies or governments. For example, BTC you send to a CEX or a regulated platform can be frozen or seized, if they come from a BTC address flagged by Chainanalysis for example, or by a government.

This is what could happen if you have BTC coming from certain mixing platforms, or a wallet from a dark net marketplace etc...

There are also platforms where people can report BTC addresses of criminals, or scammers, if you want to look at an example of that you can look here : https://www.chainabuse.com/reports

Crypt0Gore

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Quote from: Despairo on July 04, 2023, 10:42:55 PM

Please refer to me where do you read about banned or blacklisted address?

AFAIK there's no such banned or blacklisted address, but only burn address. Burn address is an address where no one has the private key, so it's mean no one can move the coins, not the coins can't be moved.

If there's such program or system to not allow any address to move or spend the coins, it's mean Bitcoin isn't decentralized anymore.

You are absolutely right, ban addresses or blacklisted addresses are something you don't want to get involved with, it means that there is a red alarm on the address and any funds leaving that address is illegal, so all other centralized exchanges or platforms will sit on the assets if you send to their platform, they will seize it and you ain't getting it back.

Bitcoin is decentralized like you said, but if you stole the Bitcoin and it's known by the authority that the Bitcoin is not rightfully yours your address will be painted red (ban or blacklisted) and all those places where you can sell your bitcoin will be alerted, once you send the Bitcoin to their own Bitcoin address you are caught already, maybe you already passed KYc on the exchange? Then your identity is compromised.

Just sit down and have some tea, patiently wait for your arrest.

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Quote from: Becassine on July 04, 2023, 07:33:26 PM

I have to say that there are still a lot of things I don't quite understand, although I try to read as much as I can.

For example, I don't understand what happens when an address is banned or blacklisted. Can't you move btc? Can't you do anything with satoshis on that address?

Thank you

If the BTC-network is decentralized, then how do you imagine that some bitcoin address would be banned? Who will do it? Nobody. No one can ban any address in the BTC-network. This is the peculiarity of bitcoin, which is called decentralization, expressed in the fact that there is no supervisory authority that regulates and is able to ban.

No one has the right to prohibit sending or receiving btc, even if this address is blacklisted. The essence of the black list is that on third-party resources, a hypothetical address will have a label (for example, about offenses, like stolen btc), which will limit the ability to exchange or sell these btc on some resources, like exchangers. But this does not mean that the money on this address will be 100% blocked and can't be transferred. On BTC-network itself, there is no way to leave unfavorable tags, which allows you to still use that hypothetical address, even if it is blacklisted.

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Quote from: Becassine on July 04, 2023, 07:33:26 PM

For example, I don't understand what happens when an address is banned or blacklisted. Can't you move btc? Can't you do anything with satoshis on that address?

When the address gets blacklisted or banned, all the coins associated with it get the status of being "tainted" or "dirty": these are terms chain analysis companies came up with to harm Bitcoin's fungibility and try to prevent people from freely transacting on the censorship-resistant network. Chain analysis firms keep track of such addresses and may deem anyone connected to these addresses a potential criminal or a person helping to facilitate illegal activity. As one of the Samourai wallet developers once said, these companies themselves created a problem of "tainted" coins and now are making a good buck offering and selling "solutions" for this nonsense. On the protocol level, nothing changes really: if you are not dealing with so-called "OFAC-compliant" miners, your transaction gets broadcast, shared between, and verified by full nodes, validated, and included into a block by economically-rational miners. In a decentralized network such as Bitcoin, it is absolutely legal to move coins to which you have a corresponding private key.

MusaMohamed

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Quote from: adaseb on July 04, 2023, 11:41:18 PM

With erc20 tokens like USDT it’s different. Those can get banned and you won’t be able to move the actual tokens. Tether did this a few times with any funds which were from hacked sources. It gets frozen pretty much.

Tether company has frozen 895 USDT addresses which hold 468,614,574 USDT
Banned addresses from Dune Analytics.

Tether Froze $300K of Stablecoin Hacked After Victims Left Wallet Keys in Evernote

Smart contracts are weapons of companies and can be forced to execute governmental requests like fund recovery from hacks or sanctions. Tether has their guide to create support tickets if your wallets are hacked.

adaseb

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With BTC and ETH even it banned you can always move your coins. However depending on what you did most likely wherever you send it, it’ll set off alerts and it might flagged as a deposit.

With erc20 tokens like USDT it’s different. Those can get banned and you won’t be able to move the actual tokens. Tether did this a few times with any funds which were from hacked sources. It gets frozen pretty much.

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Quote from: Despairo on July 04, 2023, 10:42:55 PM

Please refer to me where do you read about banned or blacklisted address?

AFAIK there's no such banned or blacklisted address, but only burn address. Burn address is an address where no one has the private key, so it's mean no one can move the coins, not the coins can't be moved.

If there's such program or system to not allow any address to move or spend the coins, it's mean Bitcoin isn't decentralized anymore.

You have not cleared the question because it seems that there is no Banned Addresses in crypto so what is the true question here?
Maybe you are. Pointing in different thing but have not cleared it here.
So please edit the post for clarity .

MusaMohamed

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Quote from: Becassine on July 04, 2023, 07:33:26 PM

I have to say that there are still a lot of things I don't quite understand, although I try to read as much as I can.

For example, I don't understand what happens when an address is banned or blacklisted. Can't you move btc? Can't you do anything with satoshis on that address?

Banned or blacklisted addresses are for altcoins with smart contracts like Tether stablecoin USDT. With their centralized smart contracts, they can ban an address, burn the token in that address.

You can not ban a Bitcoin address because anyone has its private key will always be able to move it to a new address or sweep it. It is a power of Bitcoin because it is decentralized, no censorship. You can not have no censorship with altcoins, smart contracts.

Stablecoins and Blacklists
Tether USDT banned addresses are 895 addresses so far.
PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets

thecodebear

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There's no such thing as a banned address. A govt could say so and so address is banned and force companies in that country to put it on a blacklist like exchanges refusing to allow bitcoin from that address to be transferred to them, but you can't outright ban an address because bitcoin operates in a decentralized manner.

Despairo

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Please refer to me where do you read about banned or blacklisted address?

AFAIK there's no such banned or blacklisted address, but only burn address. Burn address is an address where no one has the private key, so it's mean no one can move the coins, not the coins can't be moved.

If there's such program or system to not allow any address to move or spend the coins, it's mean Bitcoin isn't decentralized anymore.

Zaguru12

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Quote from: Becassine on July 04, 2023, 07:33:26 PM

For example, I don't understand what happens when an address is banned or blacklisted. Can't you move btc? Can't you do anything with satoshis on that address?

At legalized exchange a bitcoin address can be banned and then the exchange will stop any utxo on that address not to be moved out. But on a regular wallet even if the address is blacklisted say by the government I doubt they can be able to stop it from transferring those funds. This tainted funds can only be confiscated by the government legalized exchanges and it would stop it from been exchanged to either fiat currency but for non legalized or private address it can actually be transferred.

Manu0004

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As a newbie to my own understanding You cannot transfer and sell the token or coin, becoming a honeypot. Usually, scammers often blacklist wallet addresses that hold large amounts of tokens or coins (whales) so its act like all run in normally, you can’t even run your satioshi it has already been from performing any transaction in it

Becassine

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I have to say that there are still a lot of things I don't quite understand, although I try to read as much as I can.

For example, I don't understand what happens when an address is banned or blacklisted. Can't you move btc? Can't you do anything with satoshis on that address?

Thank you

Topic: What happens to banned addresses? - page 2. (Read 387 times)