3 ms·
Crypto exchange FTX bails out lending platform BlockFi
- dubswithus 4y agoUsually it's the government bailing out financial companies? Breath of fresh air.
- JumpCrisscross 4y ago> Usually it's the government bailing out financial companies? Looks like crypto is crossing through free banking into late 19th [1] / early 20th century [2]. [1] https://en.wikipedia.org/wiki/Panic_of_1893#Effects https://en.wikipedia.org/wiki/Panic_of_1893#Effects [2] https://en.wikipedia.org/wiki/Panic_of_1907#J._P._Morgan https://en.wikipedia.org/wiki/Panic_of_1907#J._P._Morgan
- anders_p 4y agoHah, yeah. Can't remember where, but I read some comment that said: "The crypto community's re-inventing modern banking, repeating every mistake along the way, and learning all the same lessons".
- genocidicbunny 4y agoThe description I subscribe to is that the crypto community is doing a completionist speedrun of 19th/20th century banking.
- rekttrader 4y agoIn 6 years they’ve done the first 40 years of fuckups. By 2032 we’ll be doing totally new sorts of banking.
- JoeMascuve 4y ago
- favflam 4y agoBlockfi promised interested bearing accounts. So they basically were running a bank. They paid 100M US in fines as a result. So, if they end up losing depositors money, who will be responsible? I think regulators should either come out with a corporate death penalty to forcefully unwind illegal banks or rescind regulations on running a bank. I am not a fan of this gray zone business building where you have to break the law and pay a penalty later down the line. If depositors lose money, do the executives go to jail?
- tornato7 4y agoWhat’s more, if the that fine bankrupts the bank, then the government literally caused the problem they were trying to avoid (consumers losing their money)