Replies to post #205232 on DD Support Board and Research Team

[IPO$]

Agree. The government is picking up some steam which is what I have been waiting for them to do so.

https://www.justice.gov/usao-sdny/pr/three-charged-first-ever-cryptocurrency-insider-trading-tipping-scheme

[IPO$]

The SEC uses the Howey Test for crypto and another, even worse problem, the NFT’s, to determine if they are a security or not.

“Promoters are marketing and the investing public is buying most of these tokens, touting or anticipating profits based on the efforts of others,” Gensler said in a Sept. 8 statement.

If a transaction is found to be an investment contract, then it’s considered a security. Then, US securities laws would apply. Caveat emptor to all those crypto and NFT operators and promoters breaking the laws. Your time has come. Get ready.

[bar1080]

Wondering how FTX handles payroll and related taxes. In the real world you can't explain it away by saying "we don't have an accounting department. As a new world crypto startup, we've ELECTED to use our funds elsewhere."

One possibility. Employees work for another FTX entity and are loaned/leased to FTX. IRS is bound to notice that and look deeper.

[janice shell]

This is unusual...

https://www.sec.gov/news/statement/lizarraga-statement-pelosi-111722

https://www.sec.gov/news/statement/lizarraga-statement-pelosi-111722

[BullNBear52]

But whether there were regulations or not you can’t say it would have prevented the fraud that took place. Fraud happens with regulated securities every day.


With Cryptos you would almost have to regulate them like a bank. They'd have to maintain a reserve and you'd have to figure out a way to insure the deposits up to a certain limit. I don't think cryptos are a security or a commodity. They are more like financial instruments. Give it to Treasury and let them deal with it.

You can't blame Gensler imo because the SEC can't enforce regulations that don't exist which created a window for all the fraud. And Congress simply didn't care since a collapse of crypto had no effect on the economy. VC firms come and go.