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thatfreshjive t1_j22ffa1 wrote

This is turning out to be a huge indictment of regulation, and the securities industry at large - Fuck this kid. How was no one aware of the undertable dealing until now?

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cloud_coder OP t1_j234ww2 wrote

Well if the customers of FTX and other crypto exchanges bothered to read the news, or the disclosures when they signed up they would know that crypto is mostly unregulated. Crypto is not a security. "crypto" tokens are nothing but some numbers on a screen. If you want to trade greenbacks for fozzle-quarks, or moons, or Dogecoin then you can but it is your loss.

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DonnieJuniorsEmails t1_j241wfc wrote

can i trade you some super valuable Trump Superhero NFTs for some fozzle-quarks??

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cloud_coder OP t1_j24fp4k wrote

No way man, the fozzle-quarks are made of Unobtainium, bro. For those that are unfamiliar:

Fozzle-Quark, promised all the tangible benefits of ether in a totally anonymous package. Mining was performed by playing Asteroids or Pac-Man. To mint a coin (one side was Pac-Man the other Asteroids) you had to play equal time on both games and hit high score FROM THE SAME IP ADDRESS within 24 hours. Man that had legs. Soooo many people bought into it. I had 2 lambos in my sights on launch day.

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DonnieJuniorsEmails t1_j26tokj wrote

nah. i have like 5 lambos. They're so common these days

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myrddyna t1_j28mp5g wrote

I got 8 lambos in my pool. OP's got a dusty jacket, and soulless shoes.

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GDLSCanadaOfficial t1_j28t6ow wrote

The issue isn't with crypto being a non backed asset.

The issue is that FTX stole customer deposits from their exchange and funneled them into their hedge funds (which then lost big time). Directly against their terms of service. And had zero collateral to back up these transfers.

SBF had a literal money making machine (fees from his exchange) and got greedy with it.

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melkipersr t1_j23o1cn wrote

One of the selling points of crypto has been its unregulated nature. FTX was based in the Bahamas for a reason. All of FTX’s investors knew that they were investing in an unregulated space — that was a good thing, as far as they were concerned … until it wasn’t.

I don’t see it as a failure of regulation so much as a plea for it.

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thatfreshjive t1_j261ik3 wrote

That sounds like a distinction without a difference - is there another way a regulatory agency pleas for help? Failure + capture are the plea.

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