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It is a blockchain failure in that blockchains in general cannot actually support transactions like this. There's too much volume and there are fees. It is al
by colechristensen 4y ago
It is a blockchain failure in that blockchains in general cannot actually support transactions like this. There's too much volume and there are fees.
It is also a regulatory failure, there are reasons this kind of dipping into customer funds is quite illegal in the US. FTX should not have been reachable by US citizens (funding should have been impossible) _or_ FTX should have been sanctioned _by_ the US. There is no reason at all that rogue financial institutions should be allowed to transact with American-regulated banks. If you want to do business in the finance sector with Americans you need to be regulated. Any argument to the contrary is very clearly contradicted by the series of crypto, defi, etc. failures in which gullible Americans lost tons of money while institutions they trusted violated common sense rules that every traditional financial institution in the US must abide by.
If you want to have freedom from this kind of regulation, you have to live in a world where these kinds of failures and frauds don't happen. Clearly they happen over and over without competent government watching them.
- vanattab 4y ago>It is also a regulatory failure, there are reasons this kind of dipping into customer funds is quite illegal in the US. FTX should not have been reachable by US citizens (funding should have been impossible) _or_ FTX should have been sanctioned _by_ the US I wonder if Sam being the 2nd biggest funder of Democrats has anything to due with this...
- colechristensen 4y agoThe SEC has been pretty slow across the board at regulating crypto.
- tru3_power 4y agoSource?
- zoklet-enjoyer 4y agohttps://www.forbes.com/sites/mattdurot/2022/11/08/ahead-of-his-crypto-firms-cash-crunch-billionaire-sam-bankman-fried-spent-tens-of-millions-on-politics/ https://www.forbes.com/sites/mattdurot/2022/11/08/ahead-of-h... His mom is Barbara Fried https://stanforddaily.com/2020/01/16/stanford-connected-fundraising-group-wants-to-raise-140-million-for-democrats-in-2020/ https://stanforddaily.com/2020/01/16/stanford-connected-fund...
- foobiekr 4y agoI am in awe of this reality. So wait, his mom is a law professor?
- deleted 4y ago[deleted]
- devalidating 4y ago> FTX should not have been reachable by US citizens Ostensibly this has already been the case. You can't even properly access ftx.com in the US. It just redirects you to the US exchange. FTX US is a distinct company from the international FTX exchange, at least according to Axios. If you still manage to get to ftx.com it gives you a banner saying its read-only, you aren't allowed to use it, and they wont let you. FTX US is still allowing withdrawals at the moment, unlike FTX proper.
- colechristensen 4y agoWell then this is a solid argument for “No regulation” being an undesirable feature of crypto and a win for Americans.
- steveBK123 4y agoFTX US is such a distinct entity it is... included in the bankruptcy filing.
- 100001_100011 4y ago> It is a blockchain failure in that blockchains in general cannot actually support transactions like this. "The #LightningNetwork has a theoretical throughput of 40 million #TPS... Lightning enables #Bitcoin to be a planetary scale decentralized medium of exchange." https://twitter.com/Excellion/status/1456088664132440069?cxt=HHwWisCysZy7iLUoAAAA https://twitter.com/Excellion/status/1456088664132440069?cxt...
- duckmysick 4y agoWhat's the practical throughput?