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?
You can possibly track regarding on those coins on where it has been moved to other address but if the hacker or scammer use mixer then for sure tracking would really be impossible since it have been mixed which its impossible for you to follow the track and also blacklisting is only possible if some service or exchange but I don't think that they would really bother.This is when bitcoin have been stolen it would really be hard to traced whos the owner.
Thanks for elaborate answer carlfebz2!
But doesn't blockchain store history of all transactions? So basically if we know that wallet #abc has been involved in illegal activities everyone can see all transaction that were done from that wallet? And perhaps at the end it would be possible to track identity of wallet by one of child transactions.
NBI can track these transactions number but it takes a lot of time to know who the hacker/scammer is because there's a lot of possibility on how the hacker would react it's way on making any transactions. I know the hacker or scammer knows this too but they have to make a non-traceable choice that doesn't bring any suspicion to their new address.