A Monte Carlo simulation has revealed significant risks within a synthetic Delaware LLC ecosystem, focusing on opacity and jurisdictional arbitrage. The study, involving 10,000 entities and 50,000 trials, identified a median of 1,185 shady entities per trial. Key scenarios tested include KYC crackdowns, bank partner exits, and whistleblower events.
The simulation found that while KYC crackdowns reduce shady volumes, they increase the complexity of surviving schemes. Whistleblower events showed the highest detection rates, suggesting transparency and whistleblower protection are more effective than cosmetic KYC measures. The status quo scenario indicated persistent risks of tax evasion and sanctions dodging, with a systemic risk index of 0.78.
Monte Carlo Simulation Highlights Risks in Delaware LLC Ecosystem
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