[throwaway_kufu]

Except Crypto isn’t regulated like stocks, so what your likely seeing is the exchange themselves shutting off service to lock in their customers while the exchange liquidates its positions.

[thefounder]

>> Except Crypto isn’t regulated like stocks,

Except that most of the time that means nothing in practice.

Just look at the GME saga and you have customers liquidated, customers not being able to buy, some not even able to sell. And on top of that the CEO of Interactive Brokers setting a target price for the stock.

All this so that few highly leveraged hedge funds can get away from the short squeeze cheaper along with their lender/broker.

[throwaway_kufu]

Except it doesn’t mean nothing because there are a bunch of lawsuits against Robinhood, because the law provides a remedy for the bullshit they pulled.

[ABeeSea]

The customers that were liquidated were trading on margin (aka with borrowed money.) When you accept that borrowed money, you also agree that the broker’s risk department can liquidate your positions to ensure they get their money back.

I have not heard any anecdotes about US exchanges not allowing selling/exiting existing positions. In fact, on of the arguments from GMEanon is that disabling buying and keeping selling open drove the price down. There is nothing illegal about a broker disabling entering a new position (buying stock).

[eloisius]

Who are they liquidating their positions to if they are shutting off access to exchanges? Every seller needs a buyer.

[throwaway_kufu]

To all the decentralized exchanges where poor fools have their money locked up to be sniped.

[3327]

Crypto isn’t governed by finra regulations. Its wild west, therefore wildwest tactics like front running etc are fair game.

Gg for those of you who maxed out credit cards to buy crypto

[paganel]

> to lock in their customers while the exchange liquidates its positions.

Not an expert in legal and financial matters, but that sounds like it would start a FBI inquiry and even prison-time for all those involved.

[AlexandrB]

I mean, maybe? If crypto is not bound by legal frameworks that govern traditional banks, what law would the exchanges have broken? The worst I could see happening is class action lawsuits, but not any kind of federal action.

[atatatat]

> all those involved

Never.

[thefounder]

so many FBI inquiries started from the GME fiasco, right?

[kevingadd]

These companies are backed by VC money, they can just drag out any court cases for years or decades until they have managed to buy themselves legal immunity. We saw it with Uber, Lyft, AirBNB, etc.

[uberdru]

True. The whole run up in crypto has been so closely tied to Goldman backing Coinbase's IPO that it's laughable.

[traveler01]

Or probably their servers didn't have the capacity to answer all those requests.

[solveit]

Not Coinbase.

[kemonocode]

Nice try, but Coinbase is one of the most, if not THE most tightly regulated exchange out there. [0]

[0] https://help.coinbase.com/en/coinbase/privacy-and-security/o...

[throwaway_kufu]

It’s the same company that attempted to keep its customers Bitcoin cash when Bitcoin forked right? Then only backed down after consumer backlash? Same company that tipped off its employees to buy Bitcoin cash to pump it before it was listed and then it was dumped on day 1?