Leaving aside the liquidity problem with that statement, it's also a lot easier to insider trade than for the feds to investigate it. That's why the penalty is

Leaving aside the liquidity problem with that statement, it's also a lot easier to insider trade than for the feds to investigate it. That's why the penalty is so high. Eventually, they'll just KYC the whole chain to your wallet because it's much cheaper to do. If you can't prove that your chaincoins are clean, you can't convert them to usable money.