[thefounder]

>> Except Crypto isn’t regulated like stocks,

Except that most of the time that means nothing in practice.

Just look at the GME saga and you have customers liquidated, customers not being able to buy, some not even able to sell. And on top of that the CEO of Interactive Brokers setting a target price for the stock.

All this so that few highly leveraged hedge funds can get away from the short squeeze cheaper along with their lender/broker.

[throwaway_kufu]

Except it doesn’t mean nothing because there are a bunch of lawsuits against Robinhood, because the law provides a remedy for the bullshit they pulled.

[thefounder]

Right! Let me know when they get their money back. I thought that when bad stuff happens on regulated markets at this level(i.e congresional probe etc) the DA, SEC, FCA or whatever agency is in charge is supposed to intervene and make it right. And btw it wasn't just RobinHood. At some point all the retail brokers(i.e Interactive Brokers) decided to hold various positions(buy/sell).

People can sue coinbase and any other shady broker as well. If you've lost 10K I doubt you are willing to spend even more to get it back in court be it coinbase, RobinHood or any other exchanger/broker with an army of lawyers.

[throwaway_kufu]

Look I’m as jaded as the rest, like everyone. I’ve seen mass manipulation to promote bullshit wars. I graduated in 2008 and I am still told to shut up and say thank you to the banks for paying back taxpayer loans with interest that bailed them out of their own fraud and let them consolidate the market. I saw the CDC initially lie about masks to allegedly preserve supplies for healthcare providers. I saw the government take trillions in future taxes and mostly give it to businesses and for the FED to leverage into even more money to prop up the stock market (hey, all time highs again mid pandemic).

Still, for all the BS lawyers get, much of it deserving, for every lawyer behind the brokers/investors/funds there are others representing the victims. These are the types of lawsuits that include egos so big that sometimes discovery of emails/communications and the prospects of sitting for depositions result in a resolution, and even change.

It’s funny you mention the army of lawyers, because many of these cases have been consolidated and one 1 Zoom hearing were 141 lawyers…they represented the plaintiffs.

[trompetenaccoun]

It's not about lawyers being good or not. What we currently have in financial markets is far from a lawful or just system. Just look how Musk manipulated TSLA and got away with a slap on the wrist $20 Million fine. He openly mocked it on twitter afterwards. And that's just a blatant example from someone who doesn't even care to hide it. That recent GME manipulation wasn't an exception, it's the norm. There are a ton of hedge funds engaged in "technically" illegal trades worth billions of dollars. But who's going to stop them when they're in uncovered short positions, which happens all the time. There is no higher power. The SEC is a paper tiger. If you want to sue Citadel, be their guest. The lawyer's fees and occasional fines they pay are already taken into account. Not that someone like you and me could even afford to bring a case against them.

[globular-toast]

Like all the people who went to jail for the 2008 crisis?

[ABeeSea]

The customers that were liquidated were trading on margin (aka with borrowed money.) When you accept that borrowed money, you also agree that the broker’s risk department can liquidate your positions to ensure they get their money back.

I have not heard any anecdotes about US exchanges not allowing selling/exiting existing positions. In fact, on of the arguments from GMEanon is that disabling buying and keeping selling open drove the price down. There is nothing illegal about a broker disabling entering a new position (buying stock).