The policy is that once UTXOs have been spent, we cannot reverse those transactions in the blockchain itself due to its immutable nature. When I mentioned reversing UTXOs that went through mixers, it was about tracking and potentially recovering those funds, not reversing the transaction in the traditional sense. The focus is on tracing where the funds have gone and working with exchanges or wallets to recover them, rather than altering the blockchain record.
5. Protection of Innocent Parties: The proposal includes mechanisms to safeguard non-involved parties, primarily through selective freezing of transactions identified with high confidence as linked to the theft. This would be managed through a judicious review process by the CVNs, who would be required to assess not only the evidence of theft but also the potential impact on third parties.
The system is designed to protect innocent parties by ensuring that any action, such as freezing funds, is only taken when there is high confidence that those funds are directly linked to the theft. The CVNs will carefully review each case to avoid any negative impact on individuals who are not involved in the theft.
If something like this passes and gets into bitcoin it's about the worst thing that could ever happen and we need a new bitcoin ASAP. you can't just steal someone's bitcoin that used.
The intention behind this proposal is not to arbitrarily interfere with or "steal" anyone's Bitcoin. The goal is to create a community-driven process where actions are taken only with thorough verification and consensus to address the specific issue of theft. Any implementation would require broad agreement within the Bitcoin community and would be designed to enhance, rather than undermine, the security and trust in the system. The feature would be optional, only activating under consensus from the community and designed not to infringe on the rights of Bitcoin holders.
It may very well be that the best approach would be an alternative proposal and this post could simply be the spark that initiates the conversation which leads to a better idea.