Why Is a Double-Spend Attack More Profitable When Targeting a Centralized Exchange?

A double-spend attack is most profitable when targeting a centralized exchange (CEX) because CEXs provide the necessary liquidity and finality to convert the double-spent coins into a different, more secure asset (like Bitcoin or a stablecoin). The attacker deposits their coin, quickly trades it, and withdraws the new asset before the exchange realizes the initial deposit transaction has been reversed on the blockchain.

The CEX acts as the crucial off-ramp, allowing the attacker to monetize the attack's proceeds.