How Does KYC/AML Compliance Potentially Deter Double-Spend Attempts on CEXs?

Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance require users to provide identifying information. While it doesn't prevent the technical attack, it creates an auditable trail linking the malicious activity to a real-world identity.

This risk of legal prosecution and asset seizure acts as a strong deterrent, especially for large-scale, high-value double-spend attempts that would be profitable enough to justify the attack cost.