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That's the antithesis of cryptocurrency. It's just regular plain old fraud and that's what the SEC is supposed to regulate. That's the only reason they exist. F

That's the antithesis of cryptocurrency. It's just regular plain old fraud and that's what the SEC is supposed to regulate. That's the only reason they exist. FTX is an exchange where you can trade cryptocurrencies for fiat currencies. If it were a decentralized on-chain exchange, how would they have stolen all this money without anyone noticing? That's the very point of public blockchains, if it had been a crypto market everyone could have watched the money disappear. Actually, a proper defi market should be set up so that the creators never even can misappropriate founds even if they wanted to, because they won't have access. Anyone can convince themselves of what the contract does by simply reading it. You don't have to trust some weird guy and his company in the Bahamas, you can verify it. Centralized exchanges like FTX and Binance do not operate this way. The closest you can get is Coinbase since they're public and need to be audited.

Forgeties79 4y ago
> That's the antithesis of cryptocurrency. It's just regular plain old fraud and that's what the SEC is supposed to regulate. Hate to be that guy, but most people using crypto have been committing (tax) fraud for years. Knowingly or unknowingly.
- trompetenaccoun 4y ago
  The statement wasn't that people using cryptocurrencies can't break the law. It's that blockchains solve this trust problem that exists in traditional finance. Very obviously the regulation we have does not work, you don't have to look at exchanges to understand that. The very same problems exist in banking but most poor folks in developed countries don't notice since even if the funds are lost there is some insurance. You could have such insurance for crypto exchange funds as well, but ultimately the people are always paying the bill when their money gets "lost", whether they understand this or not. Insurance costs money. A better system would be a more transparent one where the money can not simply disappear in the first place.
  - Forgeties79 4y ago
    No argument here!

Forgeties79 4y ago

> That's the antithesis of cryptocurrency. It's just regular plain old fraud and that's what the SEC is supposed to regulate. Hate to be that guy, but most people using crypto have been committing (tax) fraud for years. Knowingly or unknowingly.

trompetenaccoun 4y ago
The statement wasn't that people using cryptocurrencies can't break the law. It's that blockchains solve this trust problem that exists in traditional finance. Very obviously the regulation we have does not work, you don't have to look at exchanges to understand that. The very same problems exist in banking but most poor folks in developed countries don't notice since even if the funds are lost there is some insurance. You could have such insurance for crypto exchange funds as well, but ultimately the people are always paying the bill when their money gets "lost", whether they understand this or not. Insurance costs money. A better system would be a more transparent one where the money can not simply disappear in the first place.
- Forgeties79 4y ago
  No argument here!