The crypto clown show continues: more lawsuits

The crypto clown show continues.

Looks like I was right again: Crypto regulation is getting way worse, as I predicted a few months ago when Bitcoin was at $30k; now at $25k, on its way to $10k. The SEC is putting on the screws on crypto, in the span of only two days suing Binance and its CEO and then on Tuesday suing Coinbase. And now another development today: SEC Seeks Temporary Restraining Order to Freeze Binance.US Assets.

As I wrote on April 19th, 2023:

The US government is trying to shut down cryptocurrencies short of making them illegal. Regulation will continue to get worse. The government sees Bitcoin as a hole in its dollar hegemony, and is trying to plug it. (e.g. sanctions evasion, tax evasion, etc.) More exchanges will fail, too. Your own, personal opinion on this matter and the US government and its role as a world police, is irrelevant here…these are just the facts.

These sort of things never get better. Imagine being a drug lord in the early ’80s and hoping that Reagan’s war on drugs would blow over in a few years or would pass. It’s always the same pattern: there is a long period in which the US government does not care or seems complacent, followed by sudden and overwhelming retaliatory action. Similar to the 10-year gap between the Gulf War and the Iraq War: an entire regime toppled in a little under a month after it seemed like the US had lost interest.

Also right about Bitcoin lagging big tech, with the former down 14 percent over past two months and the later up 10 percent. The divergence of performance between the two is the widest it has ever been and will keep getting worse for Bitcoin. So many people got this wrong, predicting either Bitcoin and tech would rise together, or predicting both would fall. I afik was the only one to correctly predict Bitcoin would fall and big tech would go up.

Crypto is like the worst investment ever: huge legal risk, does not hedge inflation, not a safeguard in crisis, does not benefit from tech/ai boom, does not generate profits. Only downside, no upside. No strengths, only weaknesses. That is why my method of shorting it has been so profitable, including a huge win yesterday with my method after the SEC sued Binance while I was short Bitcoin that morning…I do have skin in the game, unlike most financial commentators.

Big tech is in the pocket of the fed. government. The same cannot be said for crypto. The choice is obvious for investors. Why would anyone invest in something that the full weight of the $19-trillion federal government is trying to stop? The US government can destroy/topple entire regimes if it wants to. You think your crypto stands a chance? Who goes against the government and wins? Big tobacco couldn’t. Neither could the auto industry.

Third, Atomic, a popular crypto wallet, suffered a major exploit, causing the loss of millions of dollars of user funds. It shows that the level of technical savvy to store cryptocurrency securely makes it impractical for the general population. Just because the financial system is flawed does not justify replacing it with a worse alternative, as crypto tries to do.

Maybe instead of calling them stupid, you can tell us what exactly went wrong or the vulnerability. Or better yet, where you warning people of Atomic before the hack? It is easy to lay blame after the fact.

The supplied link in her tweet is equally useless:

So this audit was on Feb, 2022, and 15 months later there is a hack? And the link tells us zero specifics only that, “…design and implementation of the Atomic Wallet system does not sufficiently demonstrate considerations for security and places current users of the wallet at significant risk,” whatever that is supposed to mean. So useless.

Yes, disgorge profits on a product they gave away for free. And these companies are headquartered in locations that are outside of the reach of most jurisdictions anyway. And also, what does @gladkos and @Changelly_team have to do with Atomic being insecure, given that these entities are unrelated?

It’s like crypto is a disguised IQ test. Most people are not smart enough to do it correctly, so they lose their funds. The reason why ‘traditional banking’ exists, with its regulations an safeguards, is because banking is hard. Not being scammed is hard. Scammers tend to be smarter and savvier than their victims.

Leave a comment

Your email address will not be published. Required fields are marked *