Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

A.G. Schneiderman Launches Inquiry into Cryptocurrency “Exchanges”

ag.ny.gov

Post reply on HN
Print view View original

21–30 of 73 posts

Re: A.G. Schneiderman Launches Inquiry into Cryptocurrency “Exchanges”

#21

Post by 52-6F-62 »

aje403 wrote: post #4

Interesting to see it's in new york - I wonder what role the big players in finance have had in lobbying for this. Nonetheless, this is great. I would bet every single crypto exchange has their hand deep in the honey pot so they deserve whatever an investigation turns up.

I wouldn't be surprised if they did.

In Toronto, TMX Inc (holders of the Toronto Stock Exchange) along with Paycase and Bank of Montreal have recently organized to establish their own trading desk/brokerage at the TSX for cryptocurrencies. The news of that came about a week or two after Bank of Montreal banned all purchases of cryptocurrency both on their debit and credit cards.

While I'm suspicious of the banks' intentions in some of these cases— I'm with you. There's just been too many outright scams, ponzi schemes, and theft.

Re: A.G. Schneiderman Launches Inquiry into Cryptocurrency “Exchanges”

#22

Post by GW150914 »

aje403 wrote: post #4

Interesting to see it's in new york - I wonder what role the big players in finance have had in lobbying for this. Nonetheless, this is great. I would bet every single crypto exchange has their hand deep in the honey pot so they deserve whatever an investigation turns up.

New York takes on a lot of cases with national implications, usually out of the Southern District. Having the AG on this is an even bigger deal than that, and a strong indication of a potential crackdown nationally.

Re: A.G. Schneiderman Launches Inquiry into Cryptocurrency “Exchanges”

#23

Post by darawk »

aje403 wrote: post #4

Interesting to see it's in new york - I wonder what role the big players in finance have had in lobbying for this. Nonetheless, this is great. I would bet every single crypto exchange has their hand deep in the honey pot so they deserve whatever an investigation turns up.

> I would bet every single crypto exchange has their hand deep in the honey pot

I really doubt it. These exchanges are making unbelievable amounts of money in fees. There's no reason for them to risk that just to make a little more.

Re: A.G. Schneiderman Launches Inquiry into Cryptocurrency “Exchanges”

#24

Post by snissn »

cycrutchfield wrote: post #19
hapnin wrote: post #18

Earlier quoted context omitted.

Because AGs are rather selective in who they'll prosecute for fraud.

And that is an entirely separate issue that has nothing to do with the fraud ongoing in cryptocurrencies.

Clearly the AG of NY has motivations and interest to protect fiat / legacy banking systems, let's not pretend otherwise.

Re: A.G. Schneiderman Launches Inquiry into Cryptocurrency “Exchanges”

#25

Post by hapnin »

cycrutchfield wrote: post #19
hapnin wrote: post #18

Earlier quoted context omitted.

Because AGs are rather selective in who they'll prosecute for fraud.

And that is an entirely separate issue that has nothing to do with the fraud ongoing in cryptocurrencies.

JP Morgan was recently sued for defrauding cryptocurrency buyers. We can be assured the corruption is intertwined.

Re: A.G. Schneiderman Launches Inquiry into Cryptocurrency “Exchanges”

#26

Post by jMyles »

cycrutchfield wrote: post #19
hapnin wrote: post #18

Earlier quoted context omitted.

Because AGs are rather selective in who they'll prosecute for fraud.

And that is an entirely separate issue that has nothing to do with the fraud ongoing in cryptocurrencies.

No it's not. I think you are perhaps intentionally being a bit obtuse to make a point, but you are better off just coming out and stating your beliefs.

In this case: major finance players are top dogs in Albany politics (along with other FIRE economy and pharma). Their input most certainly has influenced and is influencing both investigations (or lack thereof) into criminal activity in big banks and other financial institutions, as well as into crypto-blockchain tech.

Some big players probably want more robust assurance that their crypto assets are protected. Others probably want to create pain in the space either because they hold a short position or because they have fear of losing their regulatory capture.

But acting like there is no relationship between the (absence of meaningful) investigations into NY finance and this news is unhelpful.

Re: A.G. Schneiderman Launches Inquiry into Cryptocurrency “Exchanges”

#27

Post by aje403 »

21 wrote: post #13
aje403 wrote: post #4

Interesting to see it's in new york - I wonder what role the big players in finance have had in lobbying for this. Nonetheless, this is great. I would bet every single crypto exchange has their hand deep in the honey pot so they deserve whatever an investigation turns up.

I'm pretty sure a bunch of big finance players were involved, but at least some of them I bet were not in the way you implied. If I were a big fund or HFT shop I for sure want as much insurance as possible that my bitcoin trading funds are kept safe. Futures have too low liquidity, and don't trade on weekend when many moves happen.

I'm not suggesting anything in particular and maybe shouldn't have used the word lobbyist and certainly don't want to sound like a conspiracy nut - but it's a good thing to keep in mind that if/when existing banks and existing exchanges become involved in trading cryptos, they'll want less competition from the vulnerable incumbents.

I completely agree though. I can't even begin to imagine what the crypto exchanges are getting away with. I haven't read about about any dark pool scandals in years so I think the banks have been behaving better.

Re: A.G. Schneiderman Launches Inquiry into Cryptocurrency “Exchanges”

#28

Post by pjc50 »

austincheney wrote: post #2

I suspect they would find some efficiently fraudulent manipulation in the complete absence of regulation, if only those exchanges were regulated enough to retain data sufficient for such inquiries.

Fortunately all the cryptocurrency in and out transactions are irrevocably documented on a public legder.

Re: A.G. Schneiderman Launches Inquiry into Cryptocurrency “Exchanges”

#30

Post by ebryce »

jMyles wrote: post #5

I'll point out the obvious, just to get the discussion going: it's reasonable to suspect that the motivation is not consumer protection but subversion of technology which presents a challenge to the FIRE economy, which has a tragic stranglehold on NY (my home state). How will we know the difference? What will we do if indeed it's the latter?

The NY AG has actually been fairly aggressive in the past few months in investigating and reaching record settlements with financial institutions.
Post reply on HN