Blockfi promised interested bearing accounts. So they basically were running a bank.
They paid 100M US in fines as a result.
So, if they end up losing depositors money, who will be responsible?
I think regulators should either come out with a corporate death penalty to forcefully unwind illegal banks or rescind regulations on running a bank. I am not a fan of this gray zone business building where you have to break the law and pay a penalty later down the line.
If depositors lose money, do the executives go to jail?
What’s more, if the that fine bankrupts the bank, then the government literally caused the problem they were trying to avoid (consumers losing their money)
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[ 2.7 ms ] story [ 82.1 ms ] threadLooks like crypto is crossing through free banking into late 19th [1] / early 20th century [2].
[1] https://en.wikipedia.org/wiki/Panic_of_1893#Effects
[2] https://en.wikipedia.org/wiki/Panic_of_1907#J._P._Morgan
Can't remember where, but I read some comment that said:
"The crypto community's re-inventing modern banking, repeating every mistake along the way, and learning all the same lessons".
They paid 100M US in fines as a result.
So, if they end up losing depositors money, who will be responsible?
I think regulators should either come out with a corporate death penalty to forcefully unwind illegal banks or rescind regulations on running a bank. I am not a fan of this gray zone business building where you have to break the law and pay a penalty later down the line.
If depositors lose money, do the executives go to jail?