Binance Hack and SEC "Statement on Potentially Unlawful Online Platforms for Trading Digital Assets"
Here are some notes from the video.
If a platform offers trading of digital assets that are securities and operates as an "exchange," as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration
"must"?
Are we the children and you the parent? Are you our master? What authority do you have to tell us adults what we can and can not do with our own stores of value? Your authority is illegitimate backed by threats of violence against innocent people. If there is no victim, there is no crime.
and the so-called standards should not be equated to the listing standards of national securities exchanges.
Good! We don't want your "tripple-A" rated phony standards. That's why we built and use this alternate system! Your centralized control does not make you effective at regulation. It makes you a target for sociopaths to control and manipulate through threats of violent force.
That said, some of these are good suggestions. Thank you for being helpful. As adults, we'll take your helpful suggestions under advisement as we make our own decisions.
- Do you trade securities on this platform? If so, is the platform registered as a national securities exchange?
- Does the platform operate as an ATS? If so, is the ATS registered as a broker-dealer and has it filed a Form ATS with the SEC?
- Is there information in FINRA's BrokerCheck ® about any individuals or firms operating the platform?
- How does the platform select digital assets for trading?
- Who can trade on the platform?
- What are the trading protocols?
- How are prices set on the platform?
- Are platform users treated equally?
- What are the platform's fees?
- How does the platform safeguard users' trading and personally identifying information?
- What are the platform's protections against cybersecurity threats, such as hacking or intrusions?
- What other services does the platform provide? Is the platform registered with the SEC for these services?
- Does the platform hold users' assets? If so, how are these assets safeguarded?
must register
must have rules
must itself comply
an ATS must comply
Why?
Please see episode 3 of Understanding Blockchain Freedom: Safety and Security. Go ahead and watch all of them for free at understandingblockchainfreedom.com.
You can view the SEC statement here.
Details on the Binance hack can be found here Binance Hack Linked To Viacoin Pump (Official Update) and here Changpeng Zhao Traps the Binance Hackers in a First For a Crypto Exchange.
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This is why Poloniex sold-out to Circle. Unfortunately, any exchange in the USA is a target at this point.
It was largely expected that the regulators would go after the exchanges, but it was the mistake of the whole cryptocurrency community to rely on these centralized trading venues.
Either crypto disconnects from fiat, or crypto becomes dependent on fiat, and by extension the very system crypto was designed to replace!
That's a good way to thin about it, for sure. We need to get serious about agorism and using a completely alternative system for exchange outside of fiat. Stuff like this will hopefully just accelerate the inevitable. At the same time, people need to level up their personal online security so they can take personal responsibility for securing their assets. People need to be adults.
Interesting video clip. Is sad that the centralized world is rubbing off on the blockchain-CRYPTO world. Despite the all the threats, cryptocurrency has proven to have come to stay. Still baffles me that statements like this can still cause a fud.
Man Brother, I couldn't agree more and to me it really is that obvious and simple. I know there are others out there who agree but the ones in power want control of others and freedom for them selfs.
If only more people would wake up and utilize the power they have, because in truth WE ARE THE POWER~*~
Thank you for this wonderful post and video. You rock! This is why you are my witness. Please continue the good fight. By the way, I heard the attack was with APIs so 2FA wouldn't have helped :-(. That is why I buy and sell on exchanges but never leave value on the exchange. I get in and get out. One last point. I'm a big fan of cryptobridge (DEX) based on bitshares but has some crypto that are not on BTS like Smartcash.
I think 2FA would have helped because they used a phishing attack to get into the account. If you think you're logging into a site but you don't get asked for 2FA, you know something isn't right. What definitely would have helped would be using a password manager browser plugin like 1Password which only fills passwords if the URL matches what is already saved.
Once they had access to the account, they used the APIs to control the heist later. People should also check their login history and verify the IPs make sense.
And yes, I'm a fan of CryptoBridge as well. My last post was about RavenCoin which is currently only trading on CryptoBridge.
Thanks for the SmartCash tip :)
Yeah you make great recommendations. I too am a big fan of 1Password. I don't know what I would do without it. You are correct about the 2FA and the phishing attack. They broke into the accounts then enabled the APIs. Very nasty. However, I heard that Binance was able to respond fast enough to keep them from withdrawing from the 31 accounts they created ahead of time that owned the VIA coin that they sold into BTC. Binance was able to replay the transaction and restore the money back to the people that got hacked. I haven't confirmed what I just wrote but I heard this from Crypt0.
You are welcome for the SmartCash. Enjoy
@smartbot tip @lukestokes 10
Σ$$$ Tipped @lukestokes
Σ10 SMART! Comment@smartbot helpto claim. Currently the price of SmartCash in the market is$0.185 USDperSMART. Current value of the tip is$1.85 USD. To find out more about SmartCash, please visit https://smartcash.cc.I thought the hack and the SEC news together were more than just coincidence. What kind of hacker loses money on a hack attempt. Seems suspiciously like Gov foul play.
Yea, it might be. I didn't want to specifically imply one way or the other, but what I think we can definitely address is the clear narrative it creates (regardless of it was a gov psyop or not). That narrative is what is powerful.
How we respond to it is even more powerful.
Dear SEC: you will lose! YOU WILL LOSE ! Your power will diminish as the whole establishment shakes harder and harder with every passing moth. BANKS as we know them will die in this decade, governments will change sides, get smaller and less scary. Eventually , in not too far future, this whole fear-BS-scarcity-slavery will collapse entirely. So keep on talking while you can, I'll just smile. TO OUR BRIGHT FUTURE BROS AND SISTAS!
Luke, I have not seen you that serious in a long time, glad that you ended up in a happy note :)
More seriously, I guess we need more people talking about this or they will find a way to impose their ideas and regulations.
Pablo! Yeah man, I was fired up. :)
If we don't educate people about reality, they will continue thinking they are slaves. They will create their own cages and happily lock themselves in.
These crypto exchangers needs to step up their online security in other to prevent investors from losing their hard earn money. We don't want to see what happen in the past to repeat itself again.
And concerning registering with the sec and other financial regulators as for me I totally disagree , because it will give the sec and government room to control the crypto market, thereby making the crypto technology revolution worthless . Because the crypto revolution is fighting against government nepotism and interference in controlling our financial life. Great and valuable post @lukestokes keep up your good work of providing quality contents for this community.
In this case, it wasn't Binance's fault. Seems to me that did a really good job of preventing the thieves from getting away with it. This was users clicking on phishing links and not being careful. This is users not using a password manager plugin to protect against phishing. This is users who didn't configure 2FA. We all need to step up or more users will lose their value and come running to mommy and daddy government to save them from themselves. We all need to level up.
Beautiful presentation and very informative and useful video. It's kind of like Steemit versus normal blogging. I might blog anyway, why not get rewarded? I'm going to move around the world playing an augmented reality game, why not get rewarded?
Highly rEsteemed!