Can the government sanction your wallet address?

[Anon Anon]

Can the government find the address of your private wallet from coinbase etc (by doing a subpeona) and sanction them by adding it to the OFAC list? This will prevent US miners from processing their transactions. So, you will have your bitcoin but won’t have an easy way to sell them. Is this possible? Thank you!

Grok seems to agree with me. https://x.com/i/grok/share/zlku8IpKrrwzqNFxTys8V98BQ

[tccadmin]

Yes – the government can sanction private wallet addresses. We saw this during the Freedom Convoy protests in Canada when the Canadian government seized bank accounts and issued a list of sanctioned wallet addresses.

This will not prevent miners from processing transactions. Marathon (MARA) once experimented with mining “OFAC compliant blocks only” and it was disaster and lasted less than two weeks before they pulled the plug.

There are myriad ways to circumvent a government sanction on a private wallet, like just moving to an offshore DEX and changing the BTC into wBTC or something else.

This is the big elephant in the room for governments vs crypto – they may know about your wallets and even your transaction history, but for the most part, they can’t actually do anything about it.

[Anon Anon]

Thanks @tccadmin! This is very helpful for new Bitcoiners.

> .. moving to an offshore DEX and changing the BTC into wBTC or something else.

That’s great advice but how would would move it easily once it is sanctioned? I just we just broadcast our transaction with a high bid (fees) and hope some non-US miner process it?

Once my address is sanctioned, how do I move my funds to a ‘clean’ address? Are there guides about this somewhere? Basically, how do I strip off the history of my address?

• This reply was modified 5 days, 3 hours ago by Anon Anon.

[Author]

Posts