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
There is no solution because you would end up punishing innocent people. E.g. if a thief buys a car with their proceeds then it's not fair to punish the car dealership by confiscating the originally-stolen coins. This was decided in Scotland in 1749, cf. https://en.wikipedia.org/wiki/Crawfurd_v_The_Royal_Bank

>>runeks+9b
How exactly are you punishing innocent people? What's happening is you're rewarding thieves.

Your example doesn't fit what I am saying either. With a digital currency you can do a pre-sale trick, so you'll see the funds were stolen - and you then don't sell them the car in the first place.

We can't incentivize theft.

>>loceng+CK
> With a digital currency you can do a pre-sale trick, so you'll see the funds were stolen - and you then don't sell them the car in the first place.

It's a race against time. As soon as the coins are sent to a new address you can't know whether goods or services were exchanged in this process and you are thus punishing a well-intentioned seller as opposed to the thief.