MoxBlog

Roben Farzad:

Well, therein lies the paradox, because crypto is unregulated. There's this element of Wild West frontier investing to it, and the fact that you did it offshore in the Bahamas.

But go back and look at that Super Bowl ad with Larry David. I mean, this was a safe, transparent way to transact in crypto. It's an exchange. You would think, as an investor, that your assets are going to be protected and segregated. But this is not like being invested in a brokerage account in the United States where, if the company goes under, or if there's a run on the bank, you have FDIC or SIPC insurance on the assets.

This was largely unregulated. It was treated, as several different regulatory arms are alleging, as an open piggy bank, an open line of credit, a one-directional line of credit, with no internal controls. It's stunning to see the CEO, the cleanup guy Ray's testimony come in here and say just, it was really run like a Wild West.

You have — when you invest in the United States in a regulated brokerage account or regulated bank account, you have protections and controls. But when you want to be part of an asset that's new, and the distributed blockchain, and it's exotic, and you take the trade of going with the Bahamas-based exchange, this is what you could reap on the other end of it.

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