4 ms·

Why not? I could find countless SEC violations that are far worse than this from banking institutions that I guarantee you use on a weekly or monthly basis. Are

• NelsonMinar 5y ago
  Yes, yes they often are. But I think you'll be hard-pressed to find many examples of legitimate banks having their primary customer offering being declared illegal and forced to stop operation immediately.
  • omeze 5y ago
    Erm, from recent memory: Wells Fargo (3rd largest US bank) had a nice 185 million fine for checking account fraud… https://en.m.wikipedia.org/wiki/Wells_Fargo_account_fraud_scandal https://en.m.wikipedia.org/wiki/Wells_Fargo_account_fraud_sc... Not saying this justifies BlockFi’s behavior but the incentives for any bank is there!
    • NelsonMinar 5y ago
      Yes, that was a fraud. I was personally a victim of it. I will never do business with Wells Fargo again in my lifetime. That doesn't mean I think all banks are fraudulent. In particular I appreciate that there was a regulatory mechanism in place to protect consumers from that fraud.
• sailfast 5y ago
  FWIW, no. After the savings and loan crisis a lot of that went away. Especially not typically fraudulent are the APY yield savings accounts whose deposits are insured. Also I doubt you could find countless violations outside of (maybe?) insider trading based on MNPI at these institutions, but if you know of them you should report them - whistleblowers can make a lot of money!!