[SERIOUS] The Banks Are Just As Suspect As Crypto Exchanges During The FTX Collapse…They Are Just Sanctioned By The Fed To Do It

In a way, a lot of these crypto exchanges function like banks do, most only hold a fraction of their reserves and invest the rest of it to try to turn a profit. The only difference is the scale of stupidity and irresponsibility they were operating under in their investments.

They get fines of the order of 0.01% of their profits! Nothing else happens, like always!

Meanwhile the SEC is going after Crypto Exchanges like Kraken and Coinbase to bring better interest rates to the US citizens.

I hate banks and FTX too but comparing this is dumb.

FTX stole and gambled/lost customer money and has become insolvent.

Banks have used customer money to buy bonds and have become illiquid.

The issue is that some people don’t know the difference between illiquid and insolvent and they think its the same thing.

I have always consider Banks and CEXs as the same. CEXs are just crypto banks but in this case they have less rules than banks and get more FUD.

However, both of them are greedy and only exists to steal money from people and gamble it.

This is why self custody is the way.

FRC won’t collapse for now because big banks injected a lot of money in it. No FED, no taxpayers money – but if you have an acc in any of these banks it is good to know they are going to use your deposits to bail it out.

A) I don’t think it would spread into other countries unless they are **heavily** exposed to US
banks.

B) This might be a tinfoil idea but the FED might be in cahoots with the business of said bad actors, after all everything is interconnected in the world of finance.

C) Might probably affect overall sentiment leading to a mass selling.

D) I’m not sure about this, too early to say especially with how rocky things are going on in the
economy

The financial market’s chaos confuses me about what the hell is happening. Everyone is playing games to defeat each other. Sometimes, It’s tough to distinguish bad and good players here.

I use multiple of banks and they are all up there lol. This is why I move my money into crypto CEXs than into my ledger. These times should show everyone the importance of self custody of your money in general and the self custody of crypto along with that.

What happened to all the stress testing the banks were supposed to do to keep the FED informed of the situation? I feel banks scammed us all. at least the crypto industry came with a good method to do proof of reserves. how can banks do proof of reserves? Difficult. I feel crypto did a better job to handle the crisis after FTX. And now it is being seen in current crypto price action.