Crypto.com accounts had unauthorized withdrawals

Post by oefrha » Thu, Jan 20, 2022, 5:24 PM UTC

GrumpyNl wrote: post #162

wpietri wrote: post #156

Earlier quoted context omitted.

> No customers experienced a loss of funds. I mean, there's still plenty of money in other people's accounts they can use to cover the losses. Does anybody know whether the regulatory regime they operate under is sound? If a US bank lost this kind of customer money in a theft, I'd have some confidence that the the FDIC and the Federal Reserve would make sure they actually had all the money they were claiming they had…

Please explain how they can use the money from other people account to cover the losses. If i had a account there, i wouldn't allow them to use my money to cover this.

Post by Wiseacre » Thu, Jan 20, 2022, 5:27 PM UTC

CPLX wrote: post #160

thow-58d4e8b wrote: post #68

Earlier quoted context omitted.

Venture capital used to be about placing small, diverse bets on a lot promising startups - everybody in the process was trying to make the world a better place Since about 2018, VC game changed - now it's about brazenly placing massive bets on a small set of startups of increasingly questionable utility, using the funds and clout to ram their way through into monopoly positions. Not a speck of morality involved anymo…

> everybody in the process was trying to make the world a better place have you actually met any VCs?

Post by CodesInChaos » Thu, Jan 20, 2022, 5:33 PM UTC

camjohnson26 wrote: post #2

By the numbers, around $34 million in funds is affected, mostly Ethereum. They say in the press release that they prevented most of the unauthorized withdrawals and reimbursed the remainder, but it’s unclear how much they had to pay for reimbursements. For context, this is the startup that has been using Matt Damon as it’s face.

Post by secondaryacct » Thu, Jan 20, 2022, 5:36 PM UTC

ashtonkem wrote: post #197

secondaryacct wrote: post #168

Earlier quoted context omitted.

Easy: imagine one of the poor sobs decides to withdraw, hop a bit of creative accounting and your money is borrowed to pay for the withdrawal. It s not each of the user individually seeing their balance go down, it s the company lying even more about its ability to liquidate all accounts. Your number on their html page they graciously present to you will go unchanged. It s not a new phenomenon, every bank does it, ex…

Also, banks are insured by the government (FDIC) and heavily regulated to reduce the risk of failure. Crypto exchanges are not, which is why they seem to fail about as often as a 19th century bank would.

Post by arcticbull » Thu, Jan 20, 2022, 5:37 PM UTC

alar44 wrote: post #208

GrumpyNl wrote: post #162

Earlier quoted context omitted.

Please explain how they can use the money from other people account to cover the losses. If i had a account there, i wouldn't allow them to use my money to cover this.

This... Is literally how banks work.