Insights from Dr. Rasit Tavus of LegalBlock | Airdrop Alert Pro

Decentralized Finance (Decentralized Finance) industry has grown exponentially over the past few years with its commitment to financial inclusion and innovation. However, this rapid expansion has also brought with it a surge in legal, regulatory, and regulatory aspects. Safety challenge. In 2024 alone, losses from DeFi-related hacking attacks exceeded $470 million. In this evolving environment, the importance of legal compliance, user education, and security measures cannot be overstated.

Dr. Rasit Tavus, blockchain legal expert and founder of blockchain legal blockhas become a leading voice in the field. In an exclusive interview with BeInCrypto, Dr. Tavus shares his insights into the pressing legal risks in DeFi, the importance of regulatory coordination, and actionable steps for platforms and users to ensure the security of the crypto ecosystem.

Changing risks in DeFi

The DeFi space has been struggling for a long time loopholesbut recent trends indicate a worrying shift in the tactics used by malicious actors. Wallet security has become the most pressing risk, Dr. Tavus said.

Industry data from 2024 shows private key leaks 43.8% of all stolen cryptocurrencieshighlighting the critical need for strong wallet security practices. Hackers are increasingly targeting users directly rather than projects or smart contracts.

“The latest trend in blockchain-native crime shows that hackers are focusing on users, not projects or smart contracts. Stealing private keys is becoming more popular every day,” Dr. Tavus shared.

The transparency of blockchain transactions creates a critical vulnerability. While transparency is fundamental to blockchain technology, it can inadvertently expose users whose identities are linked through social media accounts or public profiles. This connection makes users more vulnerable to targeted attacks Scam and other malicious activities.

“I strongly advise against using the same nickname on social media and wallet services. This is an open invitation to the hacker community: ‘Hello, you can find me on social media. “If you could install malware and steal my private keys, you know how much you’d steal,” he added.

Protecting sensitive information like seed phrases is another critical part of keeping the crypto space secure. Restarting your modem and router before connecting to your wallet can add an extra layer of protection by refreshing the network connection, making it harder for attackers to exploit potential vulnerabilities.

It is also important to choose a secure device to manage digital wallet. Using a device designed specifically for wallet transactions and minimizing contact with other applications or online activity can significantly reduce the risk of malware or unauthorized access compromising sensitive data.

“It’s worth mentioning that users should rely on their own modems and routers, rather than those provided by their service providers. I also wouldn’t recommend using an operating system that allows applications to be installed without the user’s consent. Ideally In this case, an Apple device without additional apps that is used exclusively as a digital wallet is the safest option,” Dr. Tavus added.

DeFi Platform Legal compliance needs to be strengthened to protect users and their ecosystem from fraud and other risks. Dr. Tavus emphasized the importance of transparency in the process, especially when its legal structure and jurisdiction are clearly outlined. This level of openness helps build trust and ensures platforms are better prepared to deal with regulatory challenges.

“Users have the right to know the legal structure of the platform and which jurisdiction is preferred. At this stage of the ecosystem, there is no logic in confronting or resisting any regulator. They should choose a jurisdiction and abide by local rules. If jurisdiction is not taken rights, any government can intervene sooner or later,” he explained.

ensure legal safety

In order to maintain legal protection in the DeFi space, users must take proactive measures. One of the most important is to check the jurisdiction of the centralized platform, as it plays a key role in determining its compliance and reliability.

“Weak compliance jurisdiction is a clear sign of the platform’s negligence towards its users,” Dr. Tavus noted.

For decentralized platforms, it is crucial to evaluate the management of the project. Users should verify that leadership adheres to industry standards and operates with transparency and accountability.

“If users notice red flags but continue to use the platform, they may not receive legal protection. A court may view this as accepting a high-risk transaction,” he said.

Complying with anti-money laundering (AML) rules is equally important. Exchanging cash for cryptocurrencies without proper KYC or licenses, especially in over-the-counter or peer-to-peer transactions, can lead to legal issues. Users should also be wary of the risk of receiving stolen or illegal funds, which could cause them serious problems.

“New regulations require transaction details to be archived for eight years, including invoices, customer KYC, scope of work and reasons for transactions. People may not realize they are receiving traced illicit funds, which could make them part of a money laundering scheme,” he warned.

Recovery Scams and Legal Recourse

Scams aimed at recovering lost cryptocurrency assets are on the rise, underscoring the importance of caution when seeking such services. Many analytics companies promote fast, secure recovery solutions, but Dr. Tavus points out that these promises are often misleading.

“Each jurisdiction and cryptocurrency exchange has a different approach and understanding of criminal conduct. Promises of broader or instant cryptocurrency recovery are purely criminal. Each case should be reviewed and analyzed individually. The most interesting is , they never disclosed the scale of what they were able to recover because they never had any volume,” he said.

Scam victims should avoid relying solely on recovery companies and instead seek help from law enforcement or a qualified legal professional. Each jurisdiction strictly regulates the proper representation of legal rights, making an experienced attorney critical to effectively handling such cases.

“The counterparty, whether Stablecoin The issuer or cryptocurrency exchange cannot verify your “property rights” claim, and they cannot take action against the “property rights” of others without a proper court order. Without the proper help from an experienced lawyer, the chances slowly decline,” he added.

For legal help, victims are encouraged to contact law enforcement. Depending on the jurisdiction, federal or state agencies may provide better support, as they often have skilled agents experienced in handling crypto-related crimes.

It is also important to consult with an experienced cryptocurrency crime attorney. Combining legal expertise with support from law enforcement agencies can improve your chances of recovering lost assets and effectively resolving fraud cases.

“For some jurisdictions, federal or state agencies perform better than local law enforcement agencies because they have crypto-experienced agents. However, in some other countries, local law enforcement performs better because federal or state agencies It’s overrun with numerous cryptocurrency cases and short-staffed,” he noted.

Long-term compliance and legal preparation for DeFi

Keeping detailed transaction records for at least eight years is crucial for DeFi projects, especially DAOoften operating as informal partnerships. Dr. Tavus pointed out that the differences between the parties DAO The presence of co-founders becomes more frequent, so complete record keeping becomes critical. Without clear documentation, co-founders risk legal trouble if a dispute arises or authorities ask for evidence of past transactions.

“For personal safety, any transaction performed for a DeFi project should be booked somewhere. On a very unexpected day, a law enforcement agency or court may ask you for details that you forgot years ago, and you may be charged because you didn’t accused of knowing something,” he explained.

Dr. Tavus shared a real-life example of an incident where a person randomly deposited $1 into his wallet gas cost After seeing the request in the Telegram group. Unbeknownst to them, the wallet was later used to hack DeFi protocols and steal $3 million. This highlights the potential risks of unlicensed trading.

To align compliance frameworks with international regulations and prevent money laundering accusations, Dr. Tavus emphasized the need to implement strong AML and KYC solutions.

“Hiring anonymous developers or paying without keeping records is not worth the personal risk. A cheaper solution is to use a centralized payment solution developed by a third party; this way, as long as the transaction is through the third party, the project is not Take any responsibility,” he advises.

Future challenges and the role of education

The legal framework surrounding DeFi is changing, with a greater focus on transparency and accountability. Dr Tavus urged the industry to take the changes seriously, especially when addressing key issues such as market manipulation.

“Despite this, some large companies still fail to understand the seriousness of the situation. Transparency should always be the first option. Otherwise, gross negligence in information disclosure may lead to serious problems unprecedented in the industry.” He warned.

For both companies and individual users, education also plays a vital role in mitigating risk. An informed user base not only helps protect individuals, but also relieves regulatory pressure on companies by fostering a safer and more responsible ecosystem.

“The main regulatory focus is to protect the retail industry. If the retail industry fully understands the risks faced when executing transactions and still insists on doing so, there will not be any legal issues,” he noted.

Dr. Tavus concluded that the future of DeFi depends on the industry’s ability to proactively address its shortcomings. Transparency, proper record-keeping, and user education are more than just safeguards—they are the foundation for building a resilient ecosystem that can thrive under scrutiny. Without these promises, DeFi risks losing credibility and the opportunity to define the future of finance on its own terms.