According to ZachXBT, detailed KYC onboarding, such as level 2 and level 3 verification, does not effectively prevent bad actors in the crypto market. Many accounts involved in fraudulent activities are purchased rather than owned by the verified individual, often for less than $100 on platforms like Telegram. ZachXBT notes that most bad actors avoid crypto-to-fiat transactions, opting for crypto-to-crypto transfers to obscure their trails and hinder law enforcement investigations.

According to ZachXBT, detailed KYC onboarding processes fail to prevent bad actors in cryptocurrency markets, as many accounts involved in fraud are purchased and not genuinely verified. ZachXBT notes that most illicit activities involve crypto-to-crypto transactions, which complicate investigations and enforcement efforts.