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?
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?
It is possible to follow the coins, but it is impossible to know if/when the owner has changed. You cannot know if a transfer is from one owners address to another address of his, or if the new address belongs to a new owner.
Even proving that the coins belonged to you could sometimes be difficult
On the other hand. Now all? exchanges require identification for buying or selling large amounts of bitcoins. If the thief sells the stolen coins through an exchange then he can be identified.
Blacklisting coins from the blockchain is impossible. Who could do that? Bitcoin is a decentralized system after all...
The hacker/thieves nowadays have become just like their scams more sophisticated. We cannot do anything to trace who the hacker is as long as many legit and non legit casino sites do not care to check where the money comes from as long as they are making profit for themselves. In fact this is the most common way nowadays how bitcoin are mixed and tainted easily from anyone with the ability to do so.
Definitive solution is to warn people to not send bitcoin to anyone before being 101% sure that they are a legit company or a legit person.