Privacy, law, and common scams

Public ledgers are often pseudonymous (addresses, not always legal names) but trails can still be followed. Laws (tax, licensing) still apply to people and companies. Common scams use urgency, fake support, and look-alike sites to steal seeds or signatures.

Open-source protocols do not erase paperwork obligations for businesses — or erase thieves.

Public ledgers show addresses, amounts, and times to anyone. They do not print names. But names can attach in other ways. An exchange that checked your ID knows which addresses are yours. If you post an address online, it is tied to you. Analysts can also follow funds from address to address. Once one link is known, much of the trail can be read.

Scams follow a pattern too. First comes a hook: a prize, a refund, a stuck payment, or a “security alert.” Then pressure: act now, keep it secret. Then the ask: type your seed, approve a transaction, or send funds to “verify.” Each step is built to keep you from slowing down.

Real example: a stranger messages you as “wallet support” about a frozen account and sends a link to a page that looks real. The page asks for your recovery words to “resync.” Once you type them, the thief can rebuild your keys and empty the account. Real support never needs those words. Source: FTC — ReportFraud.ftc.gov (report crypto and other scams to the FTC).