So many times I stated on my own site, or on FakeBook, or even in person to keep your cash as far away from any crypto-currencies and their exchanges, as far away as possible! New technologies come and go, and their introductions many times do create bubbles when financial assets are involved, and this is just one more example of that. Stop talking about how “legitimate” this could be one day – you sound stupid. Crypto exchanges are going under and people have lost a ton of money during this exercise. Get your money back into U.S. dollars before you become another victim of a Voyager or a Celsius or a crypto exchange to be named later. All those fools were doing with your money was pooling it and turning around and investing it into some other piece of Leftist Pseudo Fluff that also made no sense, comprehende? [I’m working on my Spanish] 🙂

Many people and their many $millions, soon to be $billions are now waiting while attorneys and courts decide how “obligated” these new firms are to ever recover an investor’s “real” money. Understand something, crypto exchanges are “unregulated entities” so you were never under the auspice or umbrella of [investor] protection such as a SIPC, FDIC, the NASD, FINRA (Financial Industry Regulatory Authority), or even the SEC. None of these agencies that could [otherwise] offer some protection in cases like these are involved for holders of crypto currency. Therefore, in my most humble opinion, the recovery of “real” U.S. dollars is not going to happen for clients of crypto exchanges that dissolve, as they are at the bottom of the food chain to get paid.

Check out who gets paid in cases of ordinary bankruptcy and in what order below:
1) Court costs
2) All Attorneys fees (both Defendant and Plaintiff legal counsel can usually reach into the $$$,$$$,$$$’s!)
3) General Liabilities such as leases on commercial office space/buildings, utilities, office equipment, and any loans outstanding
4) Employees of the crypto exchange itself, including money owed to management
5) You
You, the client, are represented last, number 5. You’re going to be the very last person, or creditor to be considered during a complete liquidation of a crypto exchange firm. Nice huh? Now do you honestly think there’s going to be one dollar left to give you once this hierarchy of creditors gets paid? 🙂 [Well, of course you did buy into this mess so I’m thinking you and gullible must get along pretty well, maybe I just answered my own question there.]

I saw an interview today where a young professional, a millennial had invested a portion, she claimed it represented a smaller amount of her savings with the Voyager Exchange to invest in crypto. Voyager just recently froze all client accounts while they wait for some knucklehead to find the money the firm lost when they pooled a bunch of client “real deposits” into some other crypto-style non-sensical venture that a competitor firm was touting. Bottom-line, she cannot get her money out, those real U.S. dollars she invested. How many people are in this very situation in the United States right now given the large variety of crypto exchanges out there? I fear these cases will be a dime-a-dozen going forward. Who would trust that they would have liquidity to get out of one of these exchanges, on any given day? Especially when on the other end the firm is participating [using your money mind you] in a chain of ventures that make absolutely no sense at all?

It’s a sad situation and I fear we are only seeing the very tip of the iceberg in the rise and fall of crypto-currency… it’s destined for one of those “great as sliced bread” things that is certain to turn downright ugly before it’s all over. 😉

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