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repomies68 | 6 years ago

What's the incentive of lying that the hack didn't happen and he still had the funds? Just shame? I don't think it is very sensible to lie at that point. You will just get caught later and it will be more painful.

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patio11|6 years ago

Fraud and embezzlement are fraudogenic because people often make the choice to continue the game rather than accept a punishment for X, which requires putting a discoverable lie on the record and then increasing the stakes (and the rate at which the shadow liability grows). This causes frauds to often expand until they implode.

This is covered at length in a great book, Lying for Money. Specific examples in Bitcoinland include Mt. Gox, which survived through fraud for 3 years after it needed to wind up, and Bitfinex/Tether, which has not yet collapsed from the billion dollar fraud they are perpetuating.

tuesdayrain|6 years ago

>Bitfinex/Tether, which has not yet collapsed from the billion dollar fraud they are perpetuating.

Citation very much needed.

johnchristopher|6 years ago

Most humans aren't cold thinking machines,so... mistakes are made.