[arcticbull]

I'm not sure why it wouldn't. You can easily launder crypto, disguise its origin and have a designated third party close the positions out at a banked exchange.

That's literally the value proposition of crypto. That you can conduct international transactions without permission.

So either...

(1) The raison d'etre hasn't been met, and therefore, it's not really providing any value over a permissioned system. Or...

(2) It works exactly as designed, allowing permissionless payments across borders and so oligarchs and demagogues can transact internationally in violation of international sanctions.

I don't see a good outcome. Am I missing something?

[geoffmunn]

If a crypto coin transaction has passed through a wallet which is known to be held by a scammer (or Russian govt), you can blacklist that coin. Tumblers help, but takes away credibility.

[arcticbull]

So run it through a DEX or take a haircut. This is the Russian government or oligarchs we're talking about not Razzlekhan.