It wasn't FDIC insured, was it? For example, you can buy crypto with Robinhood, but any uninvested cash is stored in partner banks which are FDIC insured. Even if the CEO of Robinhood wanted to commit fraud, would they be able to? How do FDIC protections work exactly? (genuine question here!)
So was part of it a process failure? Like even when SBF wants to commit fraud in his situation, where should regulations have stopped him?
Pretty sure if the money is withdrawn from the account and sent to say Almeada Research it's not longer FDIC insured because it's not money in an FDIC account.
Not that I'm saying the money was every within an FDIC [1] insured account.
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Depends on the kind of fraud that Robinhood wanted to do. CEO/CFO definitely have the ability to arbitrarily transfer money amount to accounts they personally control.
FDIC only protects against bank failure, it doesn't save you from somebody credential stuffing your bank to authorize a wire transfer.
So was part of it a process failure? Like even when SBF wants to commit fraud in his situation, where should regulations have stopped him?