Comment by akoboldfrying

I'm trying to see a way for burning the coins to be useful in some way, but I'm not yet seeing it in your scenario. If it were the case that there had been a theft, and the thief wanted to be able to spend a fraction of what they stole (instead of get it all blacklisted), wouldn't the deal involve sending the remaining fraction back to the original owners? If you steal something from me, I'm interested in getting (at least some fraction of) that thing back, not in you provably destroying some fraction of it.