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The only thing that allowed this in the first place is counterparty risk, the very problem that bitcoin actually solves. People will have to learn this the hard

The only thing that allowed this in the first place is counterparty risk, the very problem that bitcoin actually solves. People will have to learn this the hard way, unfortunately.

adastra22 4y ago
You shouldn’t be downvoted. This FTX saga has nothing to do with cryptocurrency. The whole point of defi is to make these sorts of institutions unnecessary.
- williamtrask 4y ago
  This article is about cryptocurrency facilitating SBF plausibly laundering funds.
  - siwatanejo 4y ago
    So what the DOJ should learn from this is to not allow bail to perpretaros of cryptocurrency-related scams.
    - harambae 4y ago
      In fairness to SBF (who I have no sympathy for and think should rot in prison), this could very easily just be set up to look like it's him. If I was someone else with access to that wallet, I could easily see waiting until SBF is out on bail and then moving funds to make everyone think it's him. On the flip side, if it was SBF, he maybe could have done it before. Martin Shrekli has stated how he did blockchain operations from a contraband cellphone while in jail.
  - adastra22 4y ago
    SBF would never have had any customer funds (or customers) if people actually used cryptocurrency as intended.
    - williamtrask 4y ago
      And yet he still could have committed a crime using the funds at his disposal. Crypto doesn’t prevent crime. On the contrary it tends to make crime net easier via facilitating money laundering.
      - siwatanejo 4y ago
        You don't seem to understand what "counterparty risk" means. If all FTX users had used a non custodial exchange to purchase crypto, the CEO of that non-custodial exchange would not have access to any customer funds, so he would not be able to commit any crime like that.
        williamtrask 4y ago
        My wording wasn’t clear. I wasn’t referring to SBF commuting a crime with customer funds. I was referring to him committing any crime for which limiting his assets may be appropriate.

The only thing that allowed this in the first place is counterparty risk, the very problem that bitcoin actually solves. People will have to learn this the hard way, unfortunately.

adastra22 4y ago

You shouldn’t be downvoted. This FTX saga has nothing to do with cryptocurrency. The whole point of defi is to make these sorts of institutions unnecessary.

williamtrask 4y ago
This article is about cryptocurrency facilitating SBF plausibly laundering funds.
- siwatanejo 4y ago
  So what the DOJ should learn from this is to not allow bail to perpretaros of cryptocurrency-related scams.
  - harambae 4y ago
    In fairness to SBF (who I have no sympathy for and think should rot in prison), this could very easily just be set up to look like it's him. If I was someone else with access to that wallet, I could easily see waiting until SBF is out on bail and then moving funds to make everyone think it's him. On the flip side, if it was SBF, he maybe could have done it before. Martin Shrekli has stated how he did blockchain operations from a contraband cellphone while in jail.
- adastra22 4y ago
  SBF would never have had any customer funds (or customers) if people actually used cryptocurrency as intended.
  - williamtrask 4y ago
    And yet he still could have committed a crime using the funds at his disposal. Crypto doesn’t prevent crime. On the contrary it tends to make crime net easier via facilitating money laundering.
    - siwatanejo 4y ago
      You don't seem to understand what "counterparty risk" means. If all FTX users had used a non custodial exchange to purchase crypto, the CEO of that non-custodial exchange would not have access to any customer funds, so he would not be able to commit any crime like that.
      - williamtrask 4y ago
        My wording wasn’t clear. I wasn’t referring to SBF commuting a crime with customer funds. I was referring to him committing any crime for which limiting his assets may be appropriate.