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Comment by ricardobeat | Hacker News Reader

I can’t help but think that this now looks like pocket money compared to the amount of fraud going on in the cryptocurrency market.

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.. which in turn is also pocket money compared to some Federal programs around the world, institutional use of retirement funds, inflated property values and insider loans.. all absolutely without one bit of cryptocurrency in them. smell the coffee, fraud is everyday

Ransomeware wouldn’t exist to the same degree without crypto. Crypto’s killer app is quite obviously fraud and illegal activity.

Looked another way, it may make our security systems more robust. Much rather have to pay money to some hacker to get my data back then wait for some future where a nationstate does it to cause harm.

My goodness wait until all this machine learning we've heard about happening with PPP loans starts to peel back the onion.

Lots of shell companies out there...

...which is pocket money compared to the federal reserve teasing the rate increase for the last 12 months while the stock market is whipsawing and mopping up excess money from the retailers.

Dude this rabbit hole goes way deeper than one might think. Insider trading at coinbase ?: https://app.finclout.io/t/x3p3G27

Well, the smart contract, or lack of smart contract allows it, so it must be legal, right?

The law is quite clear. The question is if it includes "alternative tradable assets" i.e. shitcoins.

https://www.sec.gov/Archives/edgar/data/1164964/000101968715....

I agree, just being a bit tongue in cheek there.

crypto is huuuuge. I mean, the market cap is $1.5 trillion alone. That is easily more than all OTC stocks combined. Then you have crypto companies like Coinbase and Binance, so another hundreds of billions.

OTC in US is 12.6T. Big crypto fan, but we are currently at around .01% of the total financial system.

1.5/12.6 = 12%

Thankfully I think the total market cap of OTC stocks worldwide is closer to ~100T so crypto is only 1%. Still a massive amount when you think about it.

OTC is small compared to bonds and other markets.

problem is that it's very hard to cash out. monero for instance.

lol it's not hard. people keep saying this. exchanges process insane volume even when taking into account churn volume. There are hundreds of exchanges. The odds are almost 100% you can process anything.

Nowadays Chainalysis has done a great job tracking and tainting crypto through all the exchanges.

not all exchanges do Chainalysis , not all fraud is picked up by it, not all exchanges will act on fraud.

I agree i depends the location, the U.S exchanges MUST comply to it though.

the order books are very thin. if you tried to cash out $100 million on monero it would collapse prices.

Monero's Market Cap is 4,2B & Volume was $164M today so... Kinda.

but also, no one moves that kind of money without thousands of microtransactions, plus the arbitrage bots start to feed when there's alot of volume making it more stable than the normal financial system.

To prove it we need a source of that.

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