The Taint Chain is a new approach to tracking stolen Bitcoins through the Blockchain. Our mechanism is not only the proper way to do track stolen cryptocurrency according to law, but is also extremely fast.
Our methodology was peer-reviewed and presented at the Security Protocols Workshop 2018 as the paper Making Bitcoin Legal. An extended analysis of what we learned following system implementation has been accepted for the 17th Annual Workshop on the Economics of Information Security and is named BitcoinRedux.Video explanations are available:
You can already do it using the rust program publicly available on github.
The version that is currently available is written in Rust and slightly inefficient. Stay tuned for a much more efficient implementation based on BlockSci.