honestly, too little too late. I don't want SBF to go to jail. I want the US government to not be asleep at the wheel and arrest these awful scams before they explode. Party's over, everyone got hurt, who is this helping now?
>Maybe it will help people actually do their due diligence and demand more from the companies they invest in.
Does that refer to investors (like Sequoia Capital etc) who owned shares in ftx etc? Or to ordinary account holders who were just using ftx as a broker?
I ask because those are two very different groups. And I think people's sympathies rest almost entirely with the second group...
The thought process was that had FTX share owners done their due diligence over the how many series of funding rounds FTX had, it would not have become that sort of behemoth, issues would have been caught immediately, and well, the little guy wouldn't have suffered the consequences.
The little guy should also have done their due diligence with crypto though, and diversified their portfolios in terms of brokers. If you "play" with money, you should be prepared to lose it all.
Legally the shareholders of FTX are well shielded by limited liability. But morally they managed to aid and abet huge fraud. People should have done their research before trusting FTX. But it is also very poor for Sequoia etc to have given FTX (and SBF himself) such strong endorsements with apparently zero actual knowledge of the business.
Full disclosure: I am one of those little guys who learnt the hard way "not my keys, not my crypto". No excuses, I was dumb and lost my money.
No I disagree with the premise. The point of government is to do what is best for society even if it is not what is necessarily popular. We outlaw the use of certain chemicals despite their practicality for this reason, as an example. People may have an irrational appetite for risk in crypto drawn by outlandish stories of unlimited wealth, but government should see it for what it is: a way to do finance without playing by the rules of finance, and step in proactively. By acting after everything is over and investors are hurt, they have failed everyone and their mandate accordingly.
I don't disagree with you, the investors referenced in my comments were the share owners more so than anyone else who should have done their DD in the early funding stages.
The government is not asleep at the wheel, in fact I don't want the government to do anything...because crypto is a scam and crypto is going to zero...it has exploded in the past, everyone who touches crypto gets burned. Let it all burn down the government can just sit back and watch the next exchange, and the next exchange, and the next crypto bank after that go "boom". Crypto isn't a party...as Buffett says crypto is rat poison. Crypto isn't necessary, its straight up gambling, I've yet to have a single instance where my all-mighty dollar isn't accepted...until I run into that...crypto is just today's pump and dump, and tomorrow's greater fool.
I disagree and feel the cost to society of letting this play out outweighed the benefit. Crypto was a clear attempt to do finance without being subject to the rules of finance and real investors got hurt.
"real investors" didn't get hurt, gamblers got hurt. "real investors" invest on regulated markets. (period). Dumb gamblers got hurt, yes, and well hopefully this will smarten them up.
Coming up with fun names for them doesn't change their classification, and many people did get fooled into believing the space was legitimate due to the mountain of junk whitepapers, "doxxing" and other efforts by scammers.
Play dumb games...win dumb prizes. Fools as easily parted with their money. Crypto has never been legitimate.
Let it all burn down. ALL of it is rat poison.
I suspect the problem you'll run into is that there are a lot of people who want the government to be so small, it can be drowned by a manchild in a hoodie (to paraphrase Grover Norquist). You'll find a few of them here too.
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[ 4.5 ms ] story [ 44.1 ms ] threadThe fact that there was apparently so little auditing of certain things is … beyond me.
However, the video does an analysis of the charges and so on.
>Maybe it will help people actually do their due diligence and demand more from the companies they invest in.
Does that refer to investors (like Sequoia Capital etc) who owned shares in ftx etc? Or to ordinary account holders who were just using ftx as a broker?
I ask because those are two very different groups. And I think people's sympathies rest almost entirely with the second group...
The little guy should also have done their due diligence with crypto though, and diversified their portfolios in terms of brokers. If you "play" with money, you should be prepared to lose it all.
Legally the shareholders of FTX are well shielded by limited liability. But morally they managed to aid and abet huge fraud. People should have done their research before trusting FTX. But it is also very poor for Sequoia etc to have given FTX (and SBF himself) such strong endorsements with apparently zero actual knowledge of the business.
Full disclosure: I am one of those little guys who learnt the hard way "not my keys, not my crypto". No excuses, I was dumb and lost my money.
What you describe and what I do are orthogonal.