In the case of individuals/groups buying seized BTC from US Marshalls, how does that work w/ KYC/AML going forward? Does a legit address "reset" the source or are these people forced to HODL or OTC for life?
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But in the real world, money flows are simply money flows, and they're blessed, damned, or unknown largely on the basis of decisions made by humans, and those decisions can be ratified or reversed in all sorts of gloriously messy ways.
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