If onchain evidence clearly documents a scam, theft or other crime, CEXs should be legally required to hand over the relevant KYC and transaction data to law enforcement when a valid legal request exists.
I support privacy. Strongly.
But privacy is not the same thing as protecting criminals.
The moment you use a centralised exchange, upload your ID and complete KYC, you have already given that exchange your identity.
If you then use the same platform to cash out stolen or fraudulently obtained funds, that KYC data should be used to identify and prosecute you.
The blockchain often shows exactly where the money came from, how it moved and where it ended up.
If stolen funds eventually reach a regulated exchange account tied to a verified identity, that should not be the point where the investigation stops.
It should be the point where the anonymous wallet finally becomes connected to a real person.
Scammers have relied for too long on the assumption that they can steal onchain, move funds through multiple wallets and eventually cash out without consequences.
That era should end.
Protect the privacy of innocent users.
Protect people from mass surveillance.
But if the evidence shows that someone used a KYC exchange to launder or cash out proceeds from documented crime, use the data and prosecute them.
Like and share if you agree.
If you disagree, challenge me.
I’m genuinely interested in the argument against this.
