- FlaggedTransaction Creation: When a user detects unauthorized access or theft, they can initiate a FlaggedTransaction via their wallet interface. This transaction includes the transaction ID of the suspicious transaction, a digital signature of the claimant, and a preliminary evidence package.
how long do they have to create such a transaction because what if alot of time has elapsed such as weeks or months? and the initial transaction utxos have been spent and created a huge chain of utxos are you going to go and cancel all of them starting from the original suspicious transaction? what if the money was sent through bitcoin mixers how are you going to know whose utxos to put a freeze on? you could end up hurting innocent people then. and the bad guys still get away...
i'm not so sure this thing has been thought through well enough if that's the case.