[dpc_01234]

I don't think you understand what it means.

The on chain contract like that can't possibly know which funds are "illicit" or "marked as suspicious". Only users entering the contract can possibly have some logic on the client side to bail out if they notice the would be joining funds with some best effort list of "illicit" addresses, and there's really nothing forcing them to use it.

I bet generally here both the public and judges do not understand the technical details.

[PretzelPirate]

A contract can reference a list of addresses that have been marked as suspicious as long as someone stores that list on chain. It doesn't need to be client side.