What Is the Primary Risk of Using a Dark Pool or OTC Desk for Crypto Trading?

The primary risk is the lack of transparency, often termed "best execution risk." Since trades are not publicly visible, it is harder to verify that the trader received the best possible price compared to the public market. There is also counterparty risk, especially with less regulated OTC desks, where the counterparty might default on the trade.

Furthermore, regulatory oversight is often lighter, increasing operational risk.