> I don't want this to come off as dunking on anyone who has touched by this tragedy. I feel for the people I know involved in this, just as I see these events as part of the inherent risk structure of the space.
> Am I wrong here?
I think so. The overwhelming majority of the lost money comes from some combination of a) criminals b) investors in crime-enablement technology c) speculators who thought they could make money off a) and b). It's not much of a tragedy, and dunking on them is warranted.
> I really want to know if these cries of foul are substantively different than, say, the required reserves to prevent these types of collapses. Or say, the existence of FDIC insurance in cases of mismanagement or even outright illegal trading by banks?
The problem with being outside the law is that you're outside the law. Banks do dumb things and lose money all the time, but the rest of us support them because they're fundamentally a part of society; they submit to society's rules, they pay the fines they get charged without complaint (even when those fines are often blatantly unfair), they generally follow the law as best as they can and go through the proper processes when they want to get the law changed (which is not to say they don't lobby for their own interests - they absolutely do - but they play by the rules).
> Am I wrong here?
I think so. The overwhelming majority of the lost money comes from some combination of a) criminals b) investors in crime-enablement technology c) speculators who thought they could make money off a) and b). It's not much of a tragedy, and dunking on them is warranted.
> I really want to know if these cries of foul are substantively different than, say, the required reserves to prevent these types of collapses. Or say, the existence of FDIC insurance in cases of mismanagement or even outright illegal trading by banks?
The problem with being outside the law is that you're outside the law. Banks do dumb things and lose money all the time, but the rest of us support them because they're fundamentally a part of society; they submit to society's rules, they pay the fines they get charged without complaint (even when those fines are often blatantly unfair), they generally follow the law as best as they can and go through the proper processes when they want to get the law changed (which is not to say they don't lobby for their own interests - they absolutely do - but they play by the rules).