Is there any solution yet to preventing stolen cryptocurrency funds from being spent? Isn't the only solution to have a central database and require laws to require every transaction to be pre-checked to see if it's stolen funds or not?
And not only that, the centralized system will have to be constantly keeping track of wallet mixing to see where funds are being redirected to, attempted to being washed to?
The best analogue is cash. If you want to return the cash you need to physically find it and move it back.
Which is why these things are not features, but bugs, in cryptocurrencies. The core design principles of cryptocurrencies are actually bugs, if you think about it.
It's a system designed around a different set of trade-offs. Calling a bug doesn't really make sense. For instance, using full disk encryption means that you lose all your data if you forget your keys. That's not an issue if you use icloud (which presumably has an account recovery process). Based on this, can you say that the "core design principles of full disk encryption are actually bugs"?
It's a bug to the vast majority of people, but that doesn't make it a bug to ultralibertarians.
It's a bug if the goal is actually to have everyone adopt it.