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Cryptocurrencies are speedrunning the history of the financial system and why it is the way it is.

smaudet 4y ago
After 10 billion USD goes missing you can bet it won't stay unregulated for long. But yeah it became apparent a while back that some very bad actors, speculators, had become involved in crypto, so I became inactive.
- readthenotes1 4y ago
  10B didn't go missing, it was stolen and they know stole it and where he put it. One to two billion is missing and probably stolen.
  - zeven7 4y ago
    Are you sure? The numbers I saw that were a draft of the balance sheet showed ~$1 billion in liquid assets, and ~$9 billion in very illiquid, mostly very low volume crypto assets, such that it would likely be hard to even get an additional $1 billion out of that "$9 billion". Source: https://twitter.com/minigrogu/status/1591104167455510529 https://twitter.com/minigrogu/status/1591104167455510529
vgatherps 4y ago
A real good takeaway here is how even a single gap in compliance controls can lead to unbounded failures, here I think largely access controls and tracking. If an exec can just go and cook the books, or like sbf did, "secretly transfer 4bn to alameda", it doesn't matter if you have strict auditors. It doesn't matter if you have compliance and control rules around comingling. This will literally never be visible to anyone in your exchange since their data source is fundamentally wrong. Nothing they did was proper or legal in the first place! It's already quite regulated in that regard. But they were able to do so in the first place since the required compliance frameworks weren't completely in place.
JacobThreeThree 4y ago
This is just criminal behavior. There's plenty of fraudsters in the financial system.
deleted 4y ago
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redox99 4y ago
Cryptocurrencies are working just fine. FTX users didn't actually own any crypto. This is people giving away their money to a criminal business. The whole point of cryptocurrencies is that you don't need to trust a third party. "Not your keys, not your coins"

After 10 billion USD goes missing you can bet it won't stay unregulated for long. But yeah it became apparent a while back that some very bad actors, speculators, had become involved in crypto, so I became inactive.

readthenotes1 4y ago
10B didn't go missing, it was stolen and they know stole it and where he put it. One to two billion is missing and probably stolen.
- zeven7 4y ago
  Are you sure? The numbers I saw that were a draft of the balance sheet showed ~$1 billion in liquid assets, and ~$9 billion in very illiquid, mostly very low volume crypto assets, such that it would likely be hard to even get an additional $1 billion out of that "$9 billion". Source: https://twitter.com/minigrogu/status/1591104167455510529 https://twitter.com/minigrogu/status/1591104167455510529

vgatherps 4y ago

A real good takeaway here is how even a single gap in compliance controls can lead to unbounded failures, here I think largely access controls and tracking. If an exec can just go and cook the books, or like sbf did, "secretly transfer 4bn to alameda", it doesn't matter if you have strict auditors. It doesn't matter if you have compliance and control rules around comingling. This will literally never be visible to anyone in your exchange since their data source is fundamentally wrong. Nothing they did was proper or legal in the first place! It's already quite regulated in that regard. But they were able to do so in the first place since the required compliance frameworks weren't completely in place.

JacobThreeThree 4y ago

This is just criminal behavior. There's plenty of fraudsters in the financial system.

deleted 4y ago

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redox99 4y ago

Cryptocurrencies are working just fine. FTX users didn't actually own any crypto. This is people giving away their money to a criminal business. The whole point of cryptocurrencies is that you don't need to trust a third party. "Not your keys, not your coins"