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You are victim-blaming. Many customers thought they were "savings accounts" that were completely distinct from the investment arm; they were deceived. SBF stole

by feoren 3y ago

You are victim-blaming. Many customers thought they were "savings accounts" that were completely distinct from the investment arm; they were deceived. SBF stole money from his "savings accounts" arm to fund his investment arm.

groggo 3y ago
It wasn't FDIC insured, was it? For example, you can buy crypto with Robinhood, but any uninvested cash is stored in partner banks which are FDIC insured. Even if the CEO of Robinhood wanted to commit fraud, would they be able to? How do FDIC protections work exactly? (genuine question here!) So was part of it a process failure? Like even when SBF wants to commit fraud in his situation, where should regulations have stopped him?
- lesuorac 3y ago
  Pretty sure if the money is withdrawn from the account and sent to say Almeada Research it's not longer FDIC insured because it's not money in an FDIC account. Not that I'm saying the money was every within an FDIC [1] insured account. -- Depends on the kind of fraud that Robinhood wanted to do. CEO/CFO definitely have the ability to arbitrarily transfer money amount to accounts they personally control. FDIC only protects against bank failure, it doesn't save you from somebody credential stuffing your bank to authorize a wire transfer. [1]: https://www.fdic.gov/resources/deposit-insurance/brochures/deposits-at-a-glance/ https://www.fdic.gov/resources/deposit-insurance/brochures/d...
Dalewyn 3y ago
>You are victim-blaming. Yup, I absolutely am. People who spend their savings (let alone life savings) on investments will end up ruining their lives sooner or later because they are ignorantly misunderstanding what "saving" and "investing" are and what government bank notes and cryptocurrency are. If you invest money that you do not want or cannot afford to lose, you need help from a proper, good accountant to set you straight.
Repulsion9513 3y ago
Here's a free life lesson: sometimes there are things that victims could have done, or could do in the future, to avoid harm. Talking about those things is not bad. Would you complain about victim blaming when a kid burns themselves on a hot pan and their parents tell them "well then don't do it again"?

by feoren 3y ago

groggo 3y ago

It wasn't FDIC insured, was it? For example, you can buy crypto with Robinhood, but any uninvested cash is stored in partner banks which are FDIC insured. Even if the CEO of Robinhood wanted to commit fraud, would they be able to? How do FDIC protections work exactly? (genuine question here!) So was part of it a process failure? Like even when SBF wants to commit fraud in his situation, where should regulations have stopped him?

lesuorac 3y ago
Pretty sure if the money is withdrawn from the account and sent to say Almeada Research it's not longer FDIC insured because it's not money in an FDIC account. Not that I'm saying the money was every within an FDIC [1] insured account. -- Depends on the kind of fraud that Robinhood wanted to do. CEO/CFO definitely have the ability to arbitrarily transfer money amount to accounts they personally control. FDIC only protects against bank failure, it doesn't save you from somebody credential stuffing your bank to authorize a wire transfer. [1]: https://www.fdic.gov/resources/deposit-insurance/brochures/deposits-at-a-glance/ https://www.fdic.gov/resources/deposit-insurance/brochures/d...

Dalewyn 3y ago

>You are victim-blaming. Yup, I absolutely am. People who spend their savings (let alone life savings) on investments will end up ruining their lives sooner or later because they are ignorantly misunderstanding what "saving" and "investing" are and what government bank notes and cryptocurrency are. If you invest money that you do not want or cannot afford to lose, you need help from a proper, good accountant to set you straight.

Repulsion9513 3y ago

Here's a free life lesson: sometimes there are things that victims could have done, or could do in the future, to avoid harm. Talking about those things is not bad. Would you complain about victim blaming when a kid burns themselves on a hot pan and their parents tell them "well then don't do it again"?