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Comment by breck | Hacker News Reader

So many people are kicking SBF now that he's on the ground and it's disgusting. Anyone who was talking shit about him in private but now is going public with it isn't smart you are a pussy.

I've never met the guy but I used FTX this month and it was solid. I'm hoping they pull through. We need more last mile providers. Instant crypto banking is >> than the molasses fiat banking we currently have.

(Obviously if you were talking shit about him publicly before the fall then I respect that and please carry on)

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Haven't they effectively admitted to stealing billions of dollars of FTX exchange customer funds to try and prevent Alameda from going under? Alameda blowing up would be one thing, its investors knew they were making a risky bet, but FTX exchange users appear to have been just straight-up robbed.

I've been able to make withdrawals from FTX just fine, but haven't logged in in a few days.

Well their assets were frozen on Nov 10 by the Bahamas' securities regulator, so I hope you withdrew any money that you needed.

https://www.bloomberg.com/news/articles/2022-11-10/ftx-com-a...

You should delete the app from your phone. An update has come out since this story broke that looks like a trojan that scans for wallet keys on your device. Also, don't go to they're website.

So, that's basically where things sit right now.

You forgot to link the source

> We need more last mile providers. Instant crypto banking is >> than the molasses fiat banking we currently have.

Based on what? Don't get me wrong, laws that have enabled companies to do awful things without repercussions definitely need improvement... but continuing to allow such corruption, just because it is a crypto exchange, only hurts the cause not helps it. These billionaires need to be held accountable at all levels. Holding SBF accountable will only help instill my confidence that things are improving... but when a bank gets caught doing it and is given a free pass, then I will certainly continue to have doubts that things have improved much.

FTX was claiming it was FDIC insured???

From August 2022:

Crypto firm FTX gets warning from FDIC to stop ‘misleading’ consumers about deposit protection

https://www.cnbc.com/2022/08/19/crypto-firm-ftx-receives-cea...

> Instant crypto banking

At least you recognize the fact his exchange is actually a bank in disguise. Plenty of people did not make that connection and they absolutely deserve to be angry that some asshole donated their deposits to some US political party and god knows what else.

There are crypto exchanges that deliberately offer a bank-like user interface and use bank-like terminology to make people think they are as safe as banks. Example:

Crypto.com:

    The World’s Fastest Growing Crypto App
    Join 50M+ users buying and selling 250+ cryptocurrencies at true cost
    Spend with the Crypto.com Visa Card and get up to 5% back
    Grow your portfolio by receiving rewards up to 14.5% on your crypto assets
    Apple iOS download icon
    Android Play Store download icon

It looks like a bank. It works like a bank. It pays much higher yields. 50 million people are using it. How could it be a scam?

The scam is fractional reserve banking. That's bad enough on its own but you gotta consider the fact these are unregulated banks which means they don't really have to follow rules such as "you must keep X% of all deposits as a reserve".

So not only do these exchanges inflate the cryptocurrency supply, they're also prone to overleveraging themselves in their attempts to "efficiently allocate" customer funds, exposing them to risk without them even realizing it, often losing everything in the process and crashing the entire cryptocurrency economy when that inflated money supply disappears into thin air.

> as safe as banks

Don't forget that U.S. banks steal 4 FTX's worth of customer funds per year: https://breckyunits.com/the-great-bank-robbery.html

I was kicking him when he wasn't on the ground too.

I respect that. Kick away.

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