Reply to Binance and FTX

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[quote=Anonymous][quote=Anonymous]I'm not into the crypto scene and am fascinated to see that much of the drama/manipulation/crimes are related to the platform companies and not the digital currencies themselves.

Illegal? These are not banks and are almost completely unregulated. I don't know what it was take for some to be prosecuted as a crime.[/quote]

Agree, and my work prohibits any ownership of crypto.  Bitcoin's proof of work mechanism ensures its integrity.  Etherium has shifted to proof of stake to satisfy the climate change crowd but it remains to be seen if that could be manipulated.

Lightly regulated platforms dealing with other people's money were a problem waiting to happen.

FTX was lending customer assets (an exchange should be safekeeping customer assets, not lending them) to a connected company, Alameda (compounding the egregiousness of the lending), that Alameda collateralized with its holdings of tokens FTX itself had issued (ensuring that a drop in the token's value would leave FTX unable financially to give its customers their assets back).

The FTX implosion has nothing to do with the digital assets themselves, but has everything to do with a financial firm that avoided all principles of good governance and risk management.

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