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The bit about stolen money being forever traced is very interesting, and leads me to an idea: can an ethics flag be added to the mining software to make your client refuse to process transactions on stolen bitcoins?

Although now that I think about it, one could allege that your bitcoins, which really belong to someone else, have been stolen, and thus effectively prevent that person from spending those bitcoins. So you would need to have a very high bar for determining those bitcoins were really yours.



I asked this on Quora a couple of months ago: http://www.quora.com/Bitcoin/Would-it-be-theoretically-possi...




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