We are talking about two different things. I’m talking about a decentralized algorithm which runs on your own machine and can reach a conclusion about a transac

We are talking about two different things. I’m talking about a decentralized algorithm which runs on your own machine and can reach a conclusion about a transaction being invalid even though it may have a valid signature. For example, imagine the thief just burns the ETH. $600mm notional value is destroyed in a few bytes of crypto. Whether someone goes to jail or not is besides the point. Can the funds be recovered, and what is the algorithmic mechanism to provide for that recovery?