The idea that you are somehow liable for every transaction that precedes your UTXO is dumb. You are responsible for your own actions. Your privacy or lack thereof is determined by how you acquired your UTXOs and how you spend them and what tools you use.
Discussion
agree with you in principle. I just think in reality we have to acknowledge that chain analysis exists and is used to freeze accounts.
> "Today, money laundering was detected and stolen funds linked to North Korea were frozen, in real-time. As an industry we have the power and responsibility to prevent digital assets from becoming a haven for money launderers and sanctions evaders, and ensure that they are a force for good," Elliptic CEO Simone Maini said in a Tuesday post.
In this case it's big bad north Korea, but the same tech can be used against any target.