Add to the mix that despite all its flaws (which are many) crypto is way more transparent than a classical financial institution due to the fact that one can track all movements. Even for entities like FTX, we can guess what their wallets at and how many funds they hold. Part of the FTX debacle was due to depositors figuring out that it didn’t have enough money to cover their debts.
Unfortunately for USD backed currencies we still don’t have any idea where or who holds the backing assets. They might as well be non existent…
Alas, the biggest scams in crypto are more opaque than that. How many dollars does Tether hold, and in what forms? Where is all of this "commercial paper"? The biggest crypto falls are still to come.
Woah woah woah. FTX (in the most generous telling) didn’t even have its own bank account.
Let’s not conflate that with not proactively reaching out to snitch on a customer (as if they are some regulatory agency).