It's a reminder to investors how little recourse they have should the trading platforms they do business with go under.
Crypto’s been in a lull lately, stuck between disinterested traders on one hand and regulatory ire on the other. This week’s trial of Sam Bankman-Fried is a stark reminder of how it got there, and why investors should be cautious.
Since FTX’s collapse, crypto executives have been quick to point out the circumstances around the case aren’t unique to the token market, and that similar fraud allegations have been made against traditional finance firms. In the case of securities-related frauds, the Securities Investor Protection Corporation—up to a $500,000 limit—will replace securities or cash missing from investors’ accounts. Some brokers have private insurance that covers their clients even further.
“As it relates to the so-called crypto exchanges, they’re doing what we wouldn’t even allow anywhere else,” said SEC Chair Gary Gensler at a House committee hearing in September. “They’re commingling, co-bundling, trading against the public and sometimes front running the public on their platforms.”
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
The Star Witness at Sam Bankman-Fried’s Trial: His Top Deputy and Ex-GirlfriendCaroline Ellison’s testimony has the potential to be particularly personal and raw
Baca lebih lajut »
As trial looms, Sam Bankman-Fried’s own words may pose his biggest riskThe founder of FTX is accused of bilking customers and investors out of billions of dollars in the 2022 collapse of his cryptocurrency empire.
Baca lebih lajut »
Trial of former FTX head Sam Bankman-Fried set to begin TuesdayBankman-Fried, who once promoted himself as the ethical face of cryptocurrencies, faces multiple fraud and money laundering charges.
Baca lebih lajut »
Will upcoming trial final let crypto forget Sam Bankman-Fried?With SBF's trial about to start, The Block had a few questions we assume you might share. We did our best to answer them.
Baca lebih lajut »
Sam Bankman-Fried opposes Ukraine FTX victim testifying remotely, lawyers tell trial judgeThe former FTX CEO's criminal trial is due to begin on Tuesday.
Baca lebih lajut »
Sam Bankman-Fried’s lawyer challenges US gov’t proposed jury questionsIn a recent court filing, the lawyer representing Sam Bankman-Fried has challenged the U.S. government’s proposed jury questions.
Baca lebih lajut »