Quote from: ETFbitcoin on Today at 09:31:56 AM

Unfortunately people have different opinion on this matter. For example, few people think it's better to freeze vulnerable UTXO rather than letting thief stole it and potentially manipulate Bitcoin price.

I completely disagree with that approach and think it makes use little better than a coin like Ethereum, which forked itself to make sure the "wrong" people didn't have access to certain coins. As soon as a small group of users start deciding who is and is not allowed to access certain coins, then we have turned bitcoin in to something it isn't. I would much rather the market takes the hit from a few million coins re-entering active circulation and ultimately recovers from the hit with the principles of bitcoin still intact, than we change the principles of bitcoin (that no third parties have any say over you money) to avoid such a hit.

The only way I would be ok with coins being locked or frozen would be if there was some method for the true owner to prove their ownership and reclaim them. The only way I can think of doing this would be by showing that the relevant private keys were derived from a seed phrase in their possession, but obviously this does not help with all the P2PK addresses or any non-HD reused addresses.