Corrupt people in crypto

[bestcoins1]

A lot of bad incidences happened in crypto community this year including:

1) FTX
2) Luna
3) Gemini Earn
4) Celcius
5) Voyager
6)BlockFi

All these incidences happened because of the greed of some people. It is important to control the entry of these kind of people as developers or people behind some new crypto projects. Otherwise people will have very less trust left on crypto in general and people will move to other alternatives. What do you think are the required steps to prevent these incidences from occurring in future ? Or are these unavoidable ?

The incident that happened to FTX, Luna, Gemini Earnings, Celsius , Wanderer, and Block Fi was an event that was unexpected by everyone even though it turned out to be a disaster or disaster for all of them. But it was totally unexpected by many people because FTX is an old exchange trusted by many people and it's not a new exchange at all. And one of the ways to avoid having something happen to them all is not to believe it when new programs, platforms and exchanges offer more services and make no sense at all.

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[KennyR]

Human mind with greed is nothing different from the reality. This greed could happen out of different reasons. Here what I see with these people as the reason to be greedy is to keep themselves on the top. The network authorities plan for something and things didn't take place as planned. This is where everything gets collapsed and we experience hard days out of the market.

[uneng]

In my opinion it's unavoiable, unless you don't invest your money in any platforms. I say that because we never know the true character of the person on the other side of the screen. They will highlight their personal qualities, but we don't know their defects and what they do on the backgrounds.

There are some points we can observe in order to not be fooled by scammers, but it's not a guarantee, though. Only God knows what is going on the hearts and minds of each man. We don't have this trait.

What I can say is to avoid manipulators, that is: people who don't accept criticisms and answer them without going directly to the point, rather they attack the criticizer on another matters that have nothing to do with the main discussion. We can also label them as egocentrics or narcissistics.

And avoid people who are sudden phenomenons praised, endorsed and promoted by the media and groups of power. Also avoid people who want to look too good, altruistic and benevolent in an artificial way.

These are the worst and easiest to recognize, but there are many others.

[Hydrogen]

What do you think are the required steps to prevent these incidences from occurring in future ? Or are these unavoidable ?

People typically look to God or governments to do all the hard work to protect them. It is a strange scenario where the human brain is the most powerful thing people possess. Yet most pride themselves in not learning and developing their minds, which is one of their strongest assets. People expect leaders and the rich to protect them. But most leaders and the wealthy want people to remain unknowledgeable and limited as it makes it easier to persuade workers to accept pay cuts and also easier to boost profits.

The area where the biggest gains can be made is by average and ordinary people making more of an effort to learn, develop their minds and knowledge. That is the only thing that can ever have the potential to abolish things like poverty and corruption. The only reason corruption can exist is due to a lack of education and lack of knowledge empowering it.

[DrBeer]

A lot of bad incidences happened in crypto community this year including:

1) FTX
2) Luna
3) Gemini Earn
4) Celcius
5) Voyager
6)BlockFi

All these incidences happened because of the greed of some people. It is important to control the entry of these kind of people as developers or people behind some new crypto projects. Otherwise people will have very less trust left on crypto in general and people will move to other alternatives. What do you think are the required steps to prevent these incidences from occurring in future ? Or are these unavoidable ?

This is not greed. These are quite targeted actions, of a criminal nature, or, in an easy version, fraud on a fairly large scale. But whatever one may say - the appropriation of other people's funds is theft!
Having uncontrolled access to resource management, in a market that is not very well regulated by law, people have a desire to get "everything now", and potentially avoid punishment, given the specifics of the "product".

[Fara Chan]

Human mind with greed is nothing different from the reality. This greed could happen out of different reasons. Here what I see with these people as the reason to be greedy is to keep themselves on the top. The network authorities plan for something and things didn't take place as planned. This is where everything gets collapsed and we experience hard days out of the market.

Greed often causes damage to thinking, so people tend to do things without compromising reality, certain authorities will only complicate things when a network is not planned properly. Therefore, certain greed will not be able to solve the corrupt problems that occur in the crypto space, in fact it will be difficult to identify how to avoid this problem, because these thoughts are based on greed that is started by each individual human being.

[Gayong88]

In my opinion there is no easy solution for this. Ultimately though, there definitely needs to be some sort of oversight entity that will govern and more regulation and oversight at an early stage.

I think this is similar to the way stock markets are regulated in the US or other countries where there needs to be clear definitions/standards according to what is allowed and what is not when creating crypto tokens, selling tokens for fundraising, or using tokens for voting/ governance.

This will prevent people from profiting from someone else's misfortune. otherwise it would collapse on its own—as was happening right now.

[Charles-Tim]

A lot of bad incidences happened in crypto community this year including:

1) FTX
2) Luna
3) Gemini Earn
4) Celcius
5) Voyager
6)BlockFi

All these incidences happened because of the greed of some people.

All these are happening because people is changing what crypto supposed to be, how Satoshi left it for them, coins transactions supposed to be trustless in a way you do not have to depend on any centralized service, but see all what you named, they are centralized services, nothing like noncustodial wallet or decentralized exchange like Bisq mentioned. If you trust someone, the person can disappoint you, which was what FTX started.

[Solosanz]

In crypto we must not trust any third party, in crypto we need to verify!

I don't know the reason why you say them corrupt, they're not corrupt but greedy since they're leaving their coins on the centralized exchange in order to save few dollar and stake their coins on lending platform to get tiny amount interest.

But the thing is they're risking all of their coins on the exchange, does it's worth to earn 5% per year but the risk is 100% of your initial capital? really not worth it.

[kro55]

You have greed and I have greed too, we all have greed so as long as greed persists it will not be possible to prevent scams. Cryptohave always been considered a risky and scam market, we should protect ourselves against that if we can't protect ourselves it's best to leave the market, don't expect the government or a hero to protect us.

Honestly, I'm fine with the market, I have nothing to lose from the recent crashes because I know that no one can be trusted in this market, I just believe in myself and I'm always ready to accept if something goes wrong with me.

[Ryker1]

Because human behavior has the same instinct of being greedy, those people who know how to play the crypto market become corrupt in this field, and those who are greedy usually becomes a victim. If all those new crypto enthusiasts know how to keep their crypto safe and do not use custodial exchange or wallet upon storing their crypto, --there is no corruption that happen.
We hope that people learned now what happened on FTX, this could be a mistake that we should not forget and should be learned.

[so98nn]

Everyone is here for profits besides the fact that we also here for the privacy. However, due to some upgraded and extensions in the crypto space over the period of time (introduction of centralised exchangers, NFT crap, Meme crap) and much more we got diverted. Then peeps started seeing huge amount of money along the way and mostly developers and project owners literally started to blow off the bubble with that intentions only.

Now, peeps themselves are trading to earn profits. However, when the limit of earning reaches beyond millions of dollars in short period of time then greed takes over.

Guess what the role is played by either project owners or peeps as whale investors. So these things were supposed to happen someday or other.

[suzanne5223]

A lot of bad incidences happened in crypto community this year including:

1) FTX
2) Luna
3) Gemini Earn
4) Celcius
5) Voyager
6)BlockFi

All these incidences happened because of the greed of some people. It is important to control the entry of these kind of people as developers or people behind some new crypto projects. Otherwise people will have very less trust left on crypto in general and people will move to other alternatives.

Point of correction. People will less trust in CEX, and centralized financial services and move to alternatives using DeFi, DEX, and non-custodial wallets which is what this forum always advises.
If you do some online surfing you'll see that the number of hardware wallet users has increased lately which shows that people are already moving to the alternatives.

What do you think are the required steps to prevent these incidences from occurring in future ? Or are these unavoidable ?

What I believe require to prevent future malpractice in the CEX, and centralized financial services is regulation and it is against the liberation introduced by Crypto.

[gurbar_nakub]

A lot of bad incidences happened in crypto community this year including:

1) FTX
2) Luna
3) Gemini Earn
4) Celcius
5) Voyager
6)BlockFi

All these incidences happened because of the greed of some people. It is important to control the entry of these kind of people as developers or people behind some new crypto projects. Otherwise people will have very less trust left on crypto in general and people will move to other alternatives. What do you think are the required steps to prevent these incidences from occurring in future ? Or are these unavoidable ?

Soon Coinbase, Binance (the most corrupt), Tether.

[CryptoBuds]

Because human behavior has the same instinct of being greedy, those people who know how to play the crypto market become corrupt in this field, and those who are greedy usually becomes a victim. If all those new crypto enthusiasts know how to keep their crypto safe and do not use custodial exchange or wallet upon storing their crypto, --there is no corruption that happen.
We hope that people learned now what happened on FTX, this could be a mistake that we should not forget and should be learned.

I agree with you that custodian wallets should not be used to store our crypto assets, but if you say people should stop using custodial exchanges, I think we won't be able to do it. Although, centralized exchanges are risky, there is no denying that they are an extremely important part of the market. They make it convenient for us to provide services that are easy to use and very suitable for many people, especially newbies. Defi and DEX currently have a lot of limitations and their use is also difficult, that's why people are still not excited about DEX.
My point is to still use CEX but never put your full trust in them, never leave money on it, trade only when necessary and withdraw everything when done.

[yhiaali3]

In fact, it is difficult to prevent such incidents from happening in the future, because greed exists as a basic instinct of many people and therefore they will constantly try to get big money in any way and it is difficult to stop them, the best way to stay safe is to avoid these central projects and increase knowledge and awareness towards these Type of projects, these things come by increasing knowledge and experience and conducting deep research before investing in any project.
In any case, I am happy that the Crypto market is cleaning itself of these weak and false projects that will collapse little by little, and only the strong and worthwhile projects will remain in the market.

[YUriy1991]

There are many cases where exchanges have been subjected to hacks, fake trades and exit scams. Good business ethics will prove that the product works well and is profitable.

One thing you can do is use more than one exchange, so your risk is spread out. The downside is that if one of them does Binance, you lose all your crypto. Also, beware of fake exchanges that are only there to steal your private keys and passwords.

[electronicash]

when he said "PEOPLE" i really thought he'd named someone from the forum and have proof. but let me give one which i think we might all agree.

Gary Gensler. this man behaved like he knew crypto and even taught blockchain in MIT where the Bitcoin community thought he could be the right man to be on SEC, it turns out he's a bad actor.

[albon]

A lot of bad incidences happened in crypto community this year including:

1) FTX
2) Luna
3) Gemini Earn
4) Celcius
5) Voyager
6)BlockFi

All these incidents happened because of the greed of some people. It is important to control the entry of these kind of people as developers or people behind some new crypto projects. Otherwise people will have very less trust left on crypto in general and people will move to other alternatives. What do you think are the required steps to prevent these incidences from occurring in future ? Or are these unavoidable ?

This is due to the greed of the project teams, their lack of experience, and their haste in making the wrong decision. Unfortunately, the investors are the victims of this greed and ignorance. I see that these incidents that have occurred and will happen will be unavoidable, but we, as investors, have to learn from experiences and incidents in order to reduce losses in the future, so we must not put all our wealth in one currency, no matter how strong it is in the market, as it may vanish in days, and we do not keep our wealth in a central exchange platform, as there are many safe alternatives. With time, we can gain enough experience that enables us not to make such mistakes and not become victims of such incidents.

[stompix]

But it was totally unexpected by many people because FTX is an old exchange trusted by many people and it's not a new exchange at all.

FTX was founded in 2019, so it's hardly an old exchange even by bitcoin standards, barely 3 years old and only getting world recognition in the bull run in 2021, when probably all the troubles also started.

All these incidences happened because of the greed of some people. It is important to control the entry of these kind of people as developers or people behind some new crypto projects.

Of some?
No, of everyone involved, because what could have been other than greed that made you deposit your tokens on a barely regulated entity with no guarantee other than their word for a 5-15%  APY? Common, honesty time, there are hundreds even now on this forum who despite all the crashes, despite the bolded announcement on top of the page will still deposit their tokens for returns, because an x10 in a few years is not enough, they want another 2x, and they want it now!
This would have not happened if everyone would have played by the first rule, be your own bank, do not trust a wanna-be bank with your coins, worse than actual banks, and for what?
SBF could have been the scammer of all cammers, if none would have trusted him with money he couldn't have scammed anybody!

In my opinion there is no easy solution for this. Ultimately though, there definitely needs to be some sort of oversight entity that will govern and more regulation and oversight at an early stage.

Or, or, let me voice this outrageous idea...
We could do without every single of those companies that need to be supervised by some entity.

A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.

See, simple, it's me and the merchant, the money is in my wallet it goes to the merchant when I buy something, it goes to my friend's wallet when I want to give him money, no ftx, no celsius, no, voyager, no #safu!