Can a crypto exchange trigger an IRS audit?

Could you elaborate on the potential for a cryptocurrency exchange to trigger an audit by the Internal Revenue Service (IRS)? Specifically, what types of activities or transactions might draw the attention of the IRS, and how might they proceed with an audit if they suspect tax evasion or underreporting? Are there any common red flags that crypto exchanges should be aware of to prevent inadvertently sparking such an investigation? Understanding these dynamics is crucial for crypto platforms to ensure compliance and mitigate any potential risks.