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SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

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Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#421

Earlier quoted context omitted.

> but didn't secure themselves against a defector Still a surprisingly amateur move. Once worked for the Federal Government where literally everything you write is potentially subject to a FOIA request. The message all new hires were told was, very clearly: "Never put anything into writing you wouldn't be happy to be see published on the front page of the Washington Post" Anything that was even vaguely close to faili…

> The message all new hires were told was, very clearly: "Never put anything into writing you wouldn't be happy to be see published on the front page of the Washington Post" > And this was for an org that was doing nothing sneaky or underhanded in the slightest I disagree. That culture is one of routinely doing sneaky and underhanded things. If it wasn’t, the rule would be “don’t do anything you wouldn't be happy to…

> If you are actively preventing evidence of your actions from being created, that is itself evidence of consciousness of wrongdoing.

Government people are humans too, not just nameless bureaucrats. Imagine working somewhere that you would never be able to make a joke, speculate on a topic, ask a question, because it could be taken out of context due to everything being documented/written down.

It is fine to desire that, but realize that there needs to be a significant pay increase and/or a significant realignment of expectations, since nobody would want to independently take responsibility or action on anything. I have worked in a culture like that and let me tell you, it was extremely difficult to have every move under a microscope 24/7 and I would never do it again.

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#423

Earlier quoted context omitted.

> I have not seen any mention of economical use except in third world countries. This is peak HN, if there ever was such a thing; you do realize that the Third World (an erroneous use of the term that relates to nations that were aligned with the Soviet Union but used to denote underdeveloped nations) comprises the most of the Human population; and if figures are correct about System D [0], it is actually the 2nd lar…

> the Third World (an erroneous use of the term that relates to nations that were aligned with the Soviet Union but used to denote underdeveloped nations) That's not what "Third World" originally meant; Third World was used to refer to the non -aligned countries, those countries that were neither aligned with the US and NATO (the "First World") nor the Soviet Union and the Warsaw pact (the "Second World").

> That's not what "Third World" originally meant; Third World was used to refer to the non-aligned countries, those countries that were neither aligned with the US and NATO (the "First World") nor the Soviet Union and the Warsaw pact (the "Second World").

Well, I concede that point; but even then it was used incorrectly considering that these third world nations are also comprised of the most developed nations in the West: Switzerland/Finland etc...

Still, the post is seething with just as much arrogance as it was misinformed and my point remains.

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#425

Earlier quoted context omitted.

More like: - It should be illegal to defraud unsuspecting individuals by hiding information that would necessarily clarify the riskyness of the contracts they are engaging in. - Businesses have way more information asymmetry advantage and we want to help limit this. - Financial responsibilities of business and individuals is something that should be looked at by a third party because this can be financing bad things…

It should be legal for anyone to do what they want with their own money. If they want to throw it off a cliff that’s fine too. What someone else chooses to risk is none of your business.

So the following should be always legal:

- Use money to buy guns. - Use money to buy drugs. - Use money to buy assassinations. - Use money to buy bombs.

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#427

Earlier quoted context omitted.

People buy commodities like Oil to make a profit, too. The question is, what cryptos are commodities and which are securities?

Is it a future / forward / swap / put / call / etc? Security. Is it a barrel of oil / unit of BTC? Commodity/Currency.

Indeed. In general, security is a product. Commodity and currencies are asset classes.

BTC would fall under the crypto asset class. I don't think financial institutions see it a currency in terms of asset class.

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#428

Are we days or hours away from finding out Binance is insolvent? Anyway, it was obvious to everyone that Binance was a scam from the beginning. Anyone with a brain knows to use a quality exchange like .

Coinbase?

Coinbase always seemed close to the only honest player in the game. They did it at a cost of always being behind the market in listings and offerings.

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#429
post #40

> In one instance, the Binance chief compliance officer messaged a colleague that, “[w]e are operating as a fking unlicensed securities exchange in the USA bro.” Source: https://twitter.com/JohnReedStark/status/1665748594421297152 This is a legendary quote from the filing.

My theory is that Binance execs were having these chats in an encrypted medium (e.g. WA or Signal) but didn't secure themselves against a defector. I think someone on the inside took screenshots and went to the feds (or started cooperating under legal pressure). There's even a leading candidate [0]. What's funny about this is it's a fine metaphor for what ails crypto as a whole. The technology is cryptographically se…

I think "defector" is the wrong terminology here, since it's likely that most - if not all - the US based execs who weren't charged handed over these chats to the SEC.

It is noteworthy how often this happens. Many of the people found guilty of sedition after the DC riot had the same thing happen when the majority (or a large minority) of people in their encrypted chat groups handed over them over to the FBI.

Is there an E2E encrypted chat app that does disappearing messages and doesn't cache them on the client?

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#430

Earlier quoted context omitted.

Hard disagree- the appearance of wrongdoing can be nearly as harmful for the accused and cause as much trouble as actual wrongdoing. Both should be avoided.

Another Hard Disagree. I put everything thing in writing. If it’s not written down it didn’t happen. Want access to prod? Sure give me a ticket. I don’t trust any place that doesn’t want things written down. And the example of a drug trial comment being taken out of context? If it looks bad in a few years maybe it should also look bad now? And maybe steps should be taken to make it better now. Writing things down, ke…

> Want access to prod? Sure give me a ticket. I don’t trust any place that doesn’t want things written down.

And this is a great example of the difference between an operational role that runs on tickets and management responsibilities.

Management is all about trade-offs and compromises. By their very nature trade-offs can almost always be presented as a bad thing.

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