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A comment on Things cryptocurrency enthusiasts probably won't tell you. Parent comment

Re:Things cryptocurrency enthusiasts probably won't tell you by smcl on Saturday September 23, 2017 @12:23PM (#15320388)
The exchanges investing client money does not surprise me at all. I worked in UK finance for 6 years or so where you have mandatory "CASS" training to warn you what is and is not OK to do with client money. I remember when I first started I was like "well obviously you keep client money and assets separate from the corporate accounts..." and EVERY year in the "refresher course" our Compliance dept gave they had new cases of banks fucking this up and getting insane fines for it [0].

If these supposedly respectable banks managed to repeatedly do this (this is after the financial crisis btw) then it's anyone's guess what goes on in the Wild West that is Bitcoin exchanges. That said, the stupidity and lack of common sense in UK financial industry continues blows my mind.

[0] - https://www.moneymarketing.co.uk/why-the-fca-rewrote-the-rul...

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Re:Things cryptocurrency enthusiasts probably won't tell you by blusterXY on Sunday September 24, 2017 @05:09AM (#15323996)
Yes, we will see what the situation is in terms of exchange liquidity. With that said, the reports were of exchanges investing customer-deposited RMB funds, not selling customer-deposited crypto for fiat and then investing that fiat for profit.
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Re:Things cryptocurrency enthusiasts probably won't tell you by smcl on Sunday September 24, 2017 @05:51AM (#15324108)
Well investing the client deposits is pretty much exactly the situation I described. Probably could be seen as less directly scammy or intentional than selling their assets and investing it in <pick-a-product>, but certainly still a pretty standard client money breach
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