How to wipe an iphone so its untraceable?

I know how to restore the iphone using the computer, but I don't want it to become unusable if it is reported lost. So how do I make it untraceable to that?

You should probably return it to the person you stole it from. Apple will find you and turn you into a human centipad.

If it is reported lost it uses its serial number, so there's no way to do that.

Apple gives all iPhone users the ability to remotely track their device using an app called Find My iPhone. Users sign up for the Find My iPhone service with a MobileMe account or Apple ID. The app lets users pinpoint the GPS location of their iPhone in a Web browser if the device is ever lost or stolen. If desired, you can disable the Find My iPhone tracking app through the iPhone's Settings app.

Instructions

Press the "Home" button just below the iPhone touchscreen.

Tap the "Settings" app.

Tap "Mail, Contacts, Calendars."

Tap "MobileMe" in the list of accounts.

Move the slider bar next to "Find My iPhone" from the "ON" position to the "OFF" position. The Find My iPhone app will no longer track your device's GPS location.