From titles about multimillion-dollar losses to court dramas involving shameful executive executives, the public perception of the blockchain often seems to be a reel of endless scandals.
In the latest phase of The clear crypto podcast.
Both ol ‘scam
While the main range often regulates the crumbles such as the FTX, Levin points out that the underlying misconduct is usually not unique to crypto; It only features a new one, sometimes the names are confusing.
“Trading running in front occurs all the time in traditional finances,” he said.
“It’s just a way of doing this with the crypto industry. It’s native to the crypto industry, but the theme of fraud that occurs also happens elsewhere. There are only ways to do so today within the technical aspects of the crypto community.”
In fact, many of the most devastating crypto crimes are highly technical exploitation of blockchain protocols, which are often committed by people with deep knowledge of the code.
Related: US DOJ files to occupy $ 225m in crypto tied to pork killing schemes
“If you mess with the underlying system and order blocks, then yes, you can use that to your advantage,” Levin said.
“Protocol code is required to know different players, and have a deep understanding.”
Crime and penalties
That technical depth created legal and ethical gray zones, especially in cases of so-called white hackers, which exploit the weaknesses, then restore stolen funds. “A crime is a crime is a crime,” Levin said.
“The claim of good intentions does not ignore the crime or the elements of the crime. From a strict legal stance, you can still be charged.”
However, the implementation is not always super black and white. “Perhaps the DOJ or other investigators are not putting these types of white hats on their list,” Levin added, especially if the losses were recovered or did not meet federal thresholds.
However, the regulation continues to be restored. Jenkinson noted that in some constituents, regulators do not understand how decentralized systems work.
“If you are ruining the rules in terms of data handling, you may need to remove the blockchain,” he said. “But it doesn’t work like that.”
To hear complete communication with clear crypto podcasts, listen to the entire stage in cointelegraph podcasts Page, Apple podcast o Spotify. And don’t forget to check the entire cointelegraph lineup of other shows!
Magazine: US risks are ‘front run’ in Bitcoin Reserve by other countries – Samson Mow
