Crypto evolved from dark market use to mainstream finance with rising risks like sanctions evasion fraud and DeFi laundering

Regulation grows but remains inconsistent with US enforcing BSA while some exchanges exploit lax oversight

Phishing case on DeFi led to six figure loss showing blockchain transparency limits without jurisdictional authority

Banks may unknowingly face crypto exposure via customer transactions with exchanges using bank rails or cards

Compliance maturity gaps force major banks to act as de facto regulators for smaller undercontrolled crypto firms

Tether and others can freeze illicit assets if law enforcement acts quickly but cooperation varies

Phased risk discovery advised including monitoring keywords wire analysis and checking business misrepresentation

Crypto crime methods change but core fraud patterns remain familiar requiring vigilance and proactive compliance