zlacker

>>mikeyo+(OP)
I ask this every so often during threads regarding stolen cryptocurrency:

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?

>>loceng+E6
With some things, such as the stablecoin USDC, the issuer can prevent specific addresses from transferring them

>>pcthro+Na
Which is only possible because it's centralized

>>runeks+yb
A DAO could just as easily decide to do the same, but it'd need to be built into the smart contracts.

>>knownj+1f
This works with the smart contracts with USDC, it's just that there's an authority which has permission to update the state to deny transfers from a specific address.

This is because USDC is a centralized stablecoin (as is USDT). There are decentralized stablecoins such as UST and MIM (and I believe DAI as well).

>>pcthro+Mv
Correct, though on second thought, given how slow many DAOs are to operate, the perpetrators would already be in some other uncontrollable currency by the time people voted to blacklist certain wallets.