Oops. I’m late posting this one, but it’s still important to consider. Molly Collett writes:
It’s hard to find the most shocking detail about FTX, the cryptocurrency exchange that imploded in such spectacular fashion. From borrowing billions of dollars from customer deposits to meet debt obligations, to using corporate funds to purchase employee homes and “personal items”—the story of FTX’s rapid demise is punctuated by acts of blatant exploitation on behalf of the now-bankrupt exchange.
If these kinds of abusive practices intuitively seem like they should be illegal, that’s because, under current U.S. securities law, they are. But FTX (which was based in the Bahamas, except for its much smaller operation FTX US) and other crypto firms largely don’t fall under securities law. Instead, they dwell in a regulatory gray area.
Read more at Slate.
h/t, Joe Cadillic