It appears that at least one miner pool has censored a bitcoin transaction from a address on the OFAC list. (The government naughty list)

More than likely the transaction will just hang out in the mempool until a block is confirmed by another pool that isn’t censoring.

It matters because if this spreads and more mining pools start to censor then the freedom to transact is not guaranteed. The network will be captured. You will only be allowed to send bitcoin to addresses that the government says you can. If you have tainted sats in your wallet suddenly you are no longer able to move any of your coins.

They don’t have to break your 12 seed words, they only need to stop your transactions from being confirmed on the blockchain.

We cannot stop pools from censoring but we can choose to only use mining pools that don’t thus robbing censoring pools of hash power and letting market forces control their behavior.

#OFACHashloss