Even in 2008, no depositors in FDIC-insured banks lost their money. Some banks died (Washington Mutual comes to mind), but it's not like FTX where the depositors are left with nothing.

I get whiplash wearing a seatbelt when my car gets into a crash. Why should I bother wearing that seatbelt? It didn’t save me from the whiplash!

> it's not like regulation saved them from being able to become insolvent.

It may have, in a way.

It's too early to tell, but it's possible that FTX's USA-based corporation ("FTX US") is still solvent. I believe it's the Bahamas-based entity that's in bankruptcy - the one that's in an offshore haven not subject to US regulations.

Edit: Looks like FTX US is bankrupt too, but still it may or may not be solvent.

Because financial fraud isn’t a victimless crime.

Regulation saved the economy from the worst of it. But this is the kind of uninformed ignorance that is common in these parts. It has been consistently proven that regulation and central banking have prevented the worst of excesses. But live in your own world without reading anything. No one is stopping you.

The US generally protects retail investors from risk like this in other financial instruments and markets. This isn't really different, its just new enough that regulators haven't caught up. This kind of event could speed that up.