Brings up an interesting point:
Is it possible and how would you freeze bitcoins owned by a person(or a specific wallet).
Is it possible and how would you freeze bitcoins owned by a person(or a specific wallet).
Pretty much the same as you'd do with cash or other physical assets.
(Transfer is necessary; seizing the private key isn't secure against copies. The FBI is known to have moved the Silk Road money to their own wallet: http://blockchain.info/address/1F1tAaz5x1HUXrCNLbtMDqcw6o5GN... )
You couldn't, as a practical matter, get the miners to agree on a blacklist. A partial attempt would segment the bitcoin protocol and so the miners would just avoid it completely.