Late last month, attackers (whom the FBI has identified as a North Korean state-sponsored operation) compromised two employee laptops at Binance (the largest cryptocurrency exchange) and then (after some steps that have not been disclosed) were able to steal $6.3 billion worth of cryptocurrency.
One of the arguments that crypto proponents make is that the crypto ecosystem is unencumbered by regulation. And indeed it’s true that regulations in the world of traditional finance impose costs and can slow innovation. And yet, regulations also keep depositors/investors/clients safe. The idea that somebody could compromise two employee laptops at a large traditional financial institution (e.g., Bank of America or Schwab) and then walk out the door with $6.3 billion dollars (not just customer data, but actual assets) is almost unthinkable, due to various protections built into the system.
I admit that I have never found the case for cryptocurrency as an investment asset class to be compelling. The surrounding environment (in which cryptocurrency assets are disproportionately targeted for theft, preferred as a means of fraudulent payment, and used widely for money laundering) makes it even less so.
- Binance Hackers Used Fake Job Interview in $6.3 Billion Attack from Elizabeth Howcroft and A.J. Vicens
Other Recommended Reading
- 4 Dangerous Assumptions That Could Hurt Your Retirement Plan from Christine Benz
- Converting a Trump Account to Roth Isn’t as Powerful as It Sounds from Harry Sit
- Treasury Regulations Introduce (Mandatory) Auto-Enrollment And Individual Stocks To Sec. 530A Trump Accounts from Ben Henry-Moreland
- 9 Years on ACA: Learnings for Early Retirees from Harry Sit
- 9 Ways Retirement Has Changed Over the Past Decade from Kate Stalter
- Who Got Richer Since 2022? from Nick Maggiulli
- AI Is Killing the Financial Blogosphere — Here’s How You Can Help from Jim Dahle
- What If This is the Worst Time to Retire? from Ben Carlson
- Why Smart People Make Dumb Decisions from Ben Carlson
Thanks for reading!
What is the Best Age to Claim Social Security?
Read the answers to this question and several other Social Security questions in my latest book:
 | Social Security Made Simple: Social Security Retirement Benefits and Related Planning Topics Explained in 100 Pages or Less |
Disclaimer:Your subscription to this blog does not create a CPA-client or other professional services relationship between you and Michael Piper or between you and Simple Subjects, LLC. By subscribing, you explicitly agree not to hold Michael Piper or Simple Subjects, LLC liable in any way for damages arising from decisions you make based on the information available herein. Neither Michael Piper nor Simple Subjects, LLC makes any warranty as to the accuracy of any information contained in this communication. The information contained herein is for informational and entertainment purposes only and does not constitute financial advice. On financial matters for which assistance is needed, I strongly urge you to meet with a professional advisor who (unlike me) has a professional relationship with you and who (again, unlike me) knows the relevant details of your situation.
You may unsubscribe at any time by clicking the link at the bottom of this email (or by removing this RSS feed from your feed reader if you have subscribed via a feed reader).
