[magicjosh]

Got an article on how Lightning fixes this?

This article is alarming to me as a normie user. I'm curious about going off the big exchanges and using my coins. What if I receive crypto through OpenSea that Coinbase deems soiled?

Although I don't like it, I could see private verification service popping up for P2P. "We make sure the coins are good before the transaction goes through".

Makes me wonder how much of a "walled garden" Bitcoin is. Sure, hold it on exchanges all you want, but don't try to use it or we lock your account.

[therein]

It is no different than depositing to an exchange that doesn't do this and then withdrawing. Or some other service with a centralized wallet.

That being said, those outputs will simply become someone else's problem later on, in limbo created by the uncertainty on whether them being held by an exchange clears their past history or not.