News involving crypto and fraud is ubiquitous in the white-collar crime sphere and, perhaps more worryingly, these fraudulent activities in the crypto sector are not limited to a single type of crime.
Then we have the institutional risk — the exchanges and platforms that present as being mainstream and stable but then collapse due to holes in their balance sheets where customer deposits should be. The spectacular recent collapse of FTX has sent shockwaves through the sector, which was already reeling from the effect of the “crypto winter” that saw coin prices plunge across the board. According to a filing in a U.S. bankruptcy court, FTX owes its 50 biggest creditors almost $3.
Proponents of the sector seek to draw in breathless crowds by playing on the “disruptive” and “Wild West” nature of the crypto space, but it is precisely that feature that makes it so attractive to con artists and thieves. Cryptocurrency remains largely beyond the reach of both domestic and global financial regulation, making it a haven for criminals and leaving investors dangerously exposed, with almost no recourse for redress if they are the victim of crime.
There is a need for external education but also self-control from users. As commentator and founder of IBC Group Mario Nawfal said on Twitter in November: “Everyone keeps asking me HOW we missed the FTX scam. It's simple: Greed. We were all making money, all of us, that we didn't think about proper due diligence. We all followed each other, like sheep, trying not to be the idiot that misses out. We're now paying our dues.
The issuing of coins/tokens also needs to be looked at, and for regulation to mean something, minimum standards comparable to those of initial public offerings are a requirement.
RichSCannon No, I don't agree with that at all.
RichSCannon No one predicted FTX collapse but it happened
RichSCannon The entire world is a playground for fraudsters 🧐
RichSCannon SBF_FTX FTX_Official
RichSCannon Cefi is pretty much just casino's yes. Defi is not. There needs to be a clear separation between the two and a wider understanding of that. Especially as regulations start coming into play.
RichSCannon So, stop helping legitimise shitcoins & change your name to BTCTelegraph
RichSCannon Tôi không nghĩ vậy. Nhưng đối với đa số mọi người thì chuyện đó là như vậy. Lý do đơn giản chỉ là họ chưa hiểu được đúng bản chất của tiền điện tử.
RichSCannon RichSCannon good report. Dig more. If you investigate projects that use BNB and ETH you will see that 95-98% of projects are scam ponzis - scam tokens created every min - people know but it's a game that is played in the crypto world. Pump n Dumps are a daily thing in crypto.
RichSCannon Life is a gamble anyways.
RichSCannon
RichSCannon Well shitcoins gives you a 100% chance of losing so
RichSCannon It's only a casino if you are trying to get rich quick and have no idea WHY something has value. Don't buy shitcoins that have no use cases. Don't buy NFT art that doesn't have an artist with staying power behind it. Don't buy blockchain gaming NFTs if you don't play games.
RichSCannon Yelp
RichSCannon Yes! Exchange all your shit coins to bitcoin ASAP!
RichSCannon They should check out the banking system and the frauds they have been involved in for years with fiat money 💰😂😴
RichSCannon be amazing if crypto can be an investment asset at a casino
😂 More FUD, the banks are the biggest fraudsters.
With the amount of shitcoins around it the gambling part will never go away
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