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Re point #2 - this is one of the crazy things for me. When you work in finance, in the UK at least, you get it drilled into your head what "client money" is, wh
by smcl 4y ago
Re point #2 - this is one of the crazy things for me. When you work in finance, in the UK at least, you get it drilled into your head what "client money" is, what that implies, what you can do with it, and notably you get reminded during any training session the size of the fines that get imposed on people who fuck with client money.
So to me it suggests that they simply don't employ anyone with any experience in banking or compliance, if they did those people would be raising hell or at least leaking or whistleblowing
- jasonwatkinspdx 4y agoIt's worse than that. FTX's regulation and compliance officer was previously the legal representation for a shady online poker operation that used a bunch of offshore shell companies and whatnot to avoid US law for years. It's clear FTX's posture was to maximally avoid regulation.
- smcl 4y agoThat might explain a lot of what went down
- pjc50 4y agoWell, yes, it was a startup by a bunch of twentysomethings with no real banking experience. There was no partitioning. > the size of the fines that get imposed on people who fuck with client money. This is crypto, law doesn't apply here. Well, that's the marketing pitch at least. So far a lot of exchanges and such like have gone bankrupt or been blatently stolen by their operators and nowhere near enough people have gone to jail.
- digianarchist 4y ago3.5 years at Jane Street Capital. No excuse really...
- smcl 4y agoI should say that what surprised me wasn't that a bunch of kids started up a company and during that process skirted, if not regulations, at least common sense. But that once serious money got involved and they grew into the millions and then billions of assets under management, nobody was around who could tell them that this was reckless and dangerous
- MarkPNeyer 4y agoOn the contrary, they were being touted as a shining example of responsible crypto. They paid for a good reputation by donating to the “correct” causes and politicians.
- thatguy0900 4y agoAll of the modern startups have skirting laws as a selling point to investors, they want them to be like that. Look at the Greyballing Uber was doing when it was a multinational billion dollar corperation. They actively don't want to play it the right way, they're going for the money.
- netheril96 4y agoI’m sure some of the people working there raised alarms, only to be shut up by the owners of the exchange, who skirted regulations on purpose.