There are a lot of stories of stolen bitcoins from hacked websites or fooled people.
I was wondering, since all transactions are in blockchain, is it technically possible to make blacklist of wallets where stolen funds where transferred (by claims of victims) to track transfers of those funds and report when the owner can be identified (for example when some goods where bought and delivery address is known)?
Or perhaps just block those blacklisted wallets and don't support them on the network (bitcoin) level?
As much as I would agree with you that we should rid the grid with thiefs and scammers I also feel like starting with blackliststing would undermine the whole essence of bitcoin. Which autorithy will decide which addresses to blacklist or not. Doing this would be the beginning of the end of bitcoins decentralization.