We Already Have Laws to Stop Crypto Fraud

Source: The American Prospect
by David Dayen

“The most obvious and inevitable financial collapse in a while — the spectacular meltdown of the apparently fraud-riddled crypto exchange FTX — just keeps getting wilder. FTX had nearly ten times as many liabilities as liquid assets. Executives at FTX knew that the company had lent customer funds to its associated hedge fund Alameda Research to cover debts. Sam Bankman-Fried, FTX and Alameda’s founder and a future prison inmate, apparently installed a ‘back door’ to move funds out of FTX without triggering accounting or compliance concerns. … It would be great if the FTX debacle was somehow unusual, and not just a badly run version of the kind of scams we’ve seen throughout financial history, particularly in the crypto space.” (11/17/22)