Quote from: 88mph on Today at 03:26:54 PM

Hi all,

Sorry for the confusing title. I'll try to explain:

What if I buy some KYC Bitcoin through an exchange and then move it to a wallet. And then, let's say I either give some of that Bitcoin to someone else (maybe a charity or a friend), or use it to buy something (maybe a used car off Craigslist). At this point, from my perspective, I no longer own that Bitcoin (i.e. it is "beyond my ownership"). But now what if the person who now "owns" that Bitcoin uses it for some illegal purpose? I would have no knowledge of that transaction, but my KYC has "propagated" to the new owner. If that transaction were to be traced, assuming it hadn't been linked with KYC transactions with the new owner's identity, I would still be the last owner of the transaction from a chain analysis perspective, right? This is not something I've heard discussed before (but admittedly I'm new hear). Seems like a risk.

Thoughts?

Thanks.

I think there is always a process to determine who is the person involved in that illegal activity. The thing that the address changes, there is a hint that Bitcoin had already changed hands. If you worry about this kind of event, you can use a mixer service so that you can clean the traces of Bitcoin even if your friend uses it for illegal activity.

Quote from: panganib999 on Today at 09:57:21 PM

I do not know how this holds ip in court but with every transaction in the blockchain a recorded hash is created, this will signify that a transfer of assets has happened and it has helped people be absolved of crimes in the past at least in the community and local friendship circle level, but my line of thinking is that if you can use it as an immutable and verifiable evidence for stuff like this, then that makes it all the more a capable form of evidence when shit hits the fan and you find yourself persecuted for crimes you didn’t commit, with only leads redirecting you to cops being anything but these transaction hashes I’m talking about.

I also view it that way but come to think of it, there is no proof that his friend is the one who owned that Bitcoin unless the address was also KYC'ed or have link to his friends identity. I do not know if it will work in court but I now realized that sending Bitcoin to a non-KYC'ed address and that address is used for illegal things might bring problem to the KYC'ed source address.