These are known risks that have regulations that significantly reduce the chance of them happening in regulated currency markets and banks.
Cryptos took the Wild West approach due to... something... and somehow think that the scams that people have used in the past with banks will not be used again with crypto.
But nobody thinks that. That's the point I was just making.
The point is that people who make bad decisions will fail before becoming too big to fail. This is in the genesis block of bitcoin.