[vmception]

> For another example, let’s say you were an employee of a retailer with the power to set a discount on certain items. You suddenly set a 100% discount on every item in the store and then buy all the inventory for $0. Try explaining to the police that you were actually fully within your legal right to do that.

But if you were the board, or the majority shareholder, it would be fine. Which is what happened here.

They borrowed money, bought a majority of the BEAN, used that BEAN to vote on their proposal to take all the money, and it passed. They kept the money, sold the BEAN, and returned the borrowed money.

[ac29]

> But if you were the board, or the majority shareholder, it would be fine. Which is what happened here.

I am fairly sure a majority shareholder could not just vote to give themselves all of a companies assets.

[vmception]

You wouldn’t want to be an investor in one that did or looked like it was doing that

But yes there are other deterrents like not optimizing share price or returns for the other shareholders, by laws, state laws, rules from the exchange you trade on and mayyybe a regulator

[cinquemb]

When i heard beanstalk was exploited, i was thinking this was some like some instant leveraged buy out, like in tradi where a investment fund borrows a bunch of money (with the other companies assets as collateral), buys a company and sells there most profitable assets while the company lingers own death door for years (with some kind inflated asset valuation with the rest of their collateral leftover) before bankruptcy.

Just much faster in crypto because they allowed for their governance to be vulnerable to flashloans.

[vmception]

Yes like that