Geez, in retrospect it looks like that crypto transfer I made from FTX to Gemini worked out by the skin of my teeth. It's amazing to me how one guy can hurt so many people either by doing shady shit himself or by allowing someone else in his company to do it. Between the FTX guy and the LUNA guy, the number of people that have been burned is staggering. But I think it's important to point out that this really isn't a crypto issue. When a high-level person decides to do shady shit at a big company, a lot of people are going to get screwed later on down the line, no matter what business the company is in. I mean, Bernie Madoff was in a regulated industry and he still managed to lie and steal billions. Or what about the Enron guys? Or Bernie Ebbers from WorldCom? I mean the list goes on and on. You can have all the regulations and protocols in place that you want, but they are never going to prevent a liar from lying.
Or you can do everything by "the book" and still get screwed like the LTCM guys. The point is, be grateful for everyday that your account and money made it to another day. It's rough out there.
Come on dude. The level of fraud and scams in cryptoland is off the charts no matter how you look at it. People have been saying for years right on this board that counterparty risk is a major reason they don't mess with magic coins. BTW strict US regulations, which forced FTX to keep a separate ring-fenced American entity, are the only reason you didn't lose everything here.
Your comment in regard to your account is not entirely correct. You bought in total for $115,078.71. The actual value of your account is $36,577.36. So if your account would have been lost, you would have been responsable for a loss of $78,501.36 and FTX would have been responsable for a loss of $36,577.36. So 68.22% of the loss would have been caused by you and 31.78% would have been caused by FTX.
The leverage should be controlled by the trader who owns the account. If you let a third party decide the leverage, and you are probably not aware of the level of leverage, then you are stupid. Most traders are NOT overleveraged. So that excuse is a very weak argument.
I was going to reply to your comment but then saw this post which is exactly what I wanted to say anyway. Yes, cryptoland fraud is huge, but all the fraud in traditional finance is just as bad.... It's just that the taxpayer pays for it.
Can you point to a single example of a traditional stock or futures brokerage receiving a "taxpayer bailout" after insiders were found to have misappropriated customer funds? SIPC and FDIC insurance is funded by fees levied on the insured institutions. In any case, from the standpoint of the average citizen and consumer of financial services, to say nothing of institutional investors and fiduciaries, all this is neither here nor there. The bottom line is that using crypto for anything beyond just warehousing of tokens in a cold wallet means running a serious, continuous risk of your funds being stolen, or vaporized by sudden token runs or counterparty collapse. It's nothing that even the average ET midwit didn't already know. John Q. Public is however learning this the hard way by getting reamed over and over. Reputationally, the FTX collapse is far more devastating than the Celsius or 3AC blowups.
Such a stupid way of thinking. I thought this site was elite trader? Cultists believe in anything. Crypto went up on a mass of hysteria, it will do it again? That's your trading plan?