3 ms·
I don't understand how it can ever be acceptable for a company to risk its customers' deposits, regardless of what kind of company it is (bank, exchange, whatev
by runeks 4y ago
I don't understand how it can ever be acceptable for a company to risk its customers' deposits, regardless of what kind of company it is (bank, exchange, whatever).
There should be a law that states:
1. Depositors are the most senior creditor (ie. they must be paid first, before any other creditor)
2. Investing depositor funds without explicit approval is a criminal act (because it's essentially using other people's money for your own interests)
- rkagerer 4y agoThere's common law out there to help you if you can establish the funds were to be held in trust, but the bar is very high. Here's an article where some lawyers speculate about priority: https://www.coindesk.com/policy/2022/11/10/ftx-violated-its-own-terms-of-service-and-misused-user-funds-lawyers-say https://www.coindesk.com/policy/2022/11/10/ftx-violated-its-... "Because the terms of service specify that customer funds do not belong to FTX, those funds cannot be used to pay back creditors or other stakeholders in the event of insolvency."