If some btc is marked as “do not spend” that means that btc is dead right? Then that’s a rigid attack from a regular side
Discussion
dust is like 547 sats
you just don’t want to combine that dust uxto with your other uxtos in order to protect against dust attack vector
you can still spend it if you want
it will be lumped into your “balance” you may see if you use a wallet that doesn’t provide you with uxto control
if dumb ass chain analysis wants to waste their sats that is on them just protect your own privacy if you care
*regulator
Depends if you know about it as the holder of those keys. If you had no idea then you could technically send it around all over. You may get arrested if the authorities are valid in your country but you could argue you had no idea they were flagged.
Probably depends a lot on local legal system, legal precedent and whatnot. Very interesting to see what would happen.