Sounds like a fraudsters nightmare since the whole thing is traceable.
That is close to nothing compared to the trillions of fraud and illicit transactions by criminals and terrorists all aided by the banks in the current system in the FinCEN files. [0]
Most fraud doesn't revolve around fudging the accounting.
SBF made billions of other people's money disappear into the crypto void without breaking the blockchain.
The idea that blockchain will prevent fraud is naive, absurd and laughable.
It doesn't make judgments about those using it. It works just as well for fraudsters and cyber criminals as anyone else. There are reasons ransomware extortionists always request payment in some sort of blockchain based crypto --- usually bitcoin.
In other words, blockchain *facilitates* fraud and crime as easily as it *prevents* it.
As soon as it hits the exchange, it is frozen, traced and whoever sent the transaction will be traced down and caught.
Unlike in the FinCEN files which the banks and criminals were all making money by processing trillions worth of transactions and a former US Treasury official who blew the whistle on this mass fraud was sent to prison [0] over the regulators not doing their job and instead was supporting criminal financing.
So why wasn't this corruption stopped earlier?
[0] https://www.icij.org/investigations/fincen-files/fincen-file...
Ah of course, that’s why crypto neither attracts nor results in fraud or scams. Obviously, everyone who has tried has also been arrested and funds returned to the victims.
/s
Absolutely no-one said that the 'funds would be returned to the victims'. Only that the criminals will be caught once the illicit funds hit the exchange and gets frozen and traced down.
Let's try again since you want to answer for the other user about the corruption evidently exposed in the FinCEN files:
Why wasn't this corruption stopped earlier?
Corruption will always find a way, it’s a result of misuse of power and governmental opaqueness - not the lack of a blockchain.
That’s why I’m making the point around actual justice not being delivered to victims of crypto fraud, despite the traceable ledger. We still need the meatspace to actually catch criminals and reverse (though not exactly possible on the blockchain) the harm inflicted.