Crypto’s Dire Externalities Cannot Be Overstated

Blockchain's sole most prominent uses - crypto and DeFi - are not just an investor ruse and a horrific plague but even worse, crypto, DeFi and the rest of Web3 form the foundation of a criminal tool beyond imagination.

For… twitter.com/i/web/status/1… @NikkelJonathan Respectfully, are you a bot? If not, did you even read the first few paragraphs which specifically rebuke your retort. Apologies brother, but I have to call ‘em as I see ‘em. Good luck and all the best.

Coinbase's SEC lawsuit for regulatory clarity is a desperate deflection and noxious red herring. Intended to sidetrack and dissemble the plain truth -that the crypto-emperor has no clothes - the charade is a subterfuge & desperate attempt to incite the mob under false pretense.🧵 twitter.com/i/web/status/1… Big Crypto’s pivot to the tired/anemic refrain of regulatory clarity is like Elizabeth Holmes blaming the FDA for bogus blood test results from Theranos’ counterfeit blood test machines or like Oswald blaming the Secret Service for JFK’s assassination.
linkedin.com/feed/update/ur…

Having served for 11 yrs as Chief of the SEC's Office of Internet Enforcement, I believe the design language of the crypto-Ponzi scheme is a multi-faceted grift, comprised of a wide range of falsehoods, all calculated to dupe consumers/investors. Here are 12 egregious examples:🧵 Crypto is a revolutionary equalizer for the unbanked and will heal historical injustices of financial exclusion.
False.
Crypto's just another example of “Predatory Inclusion” and affinity fraud, orchestrated to dupe the poor, disadvantaged and disaffected.
brookings.edu/experts/tonant…

Some critical warnings and reminders about Crypto, DeFi, NFTs and all of the other Web3 nonsense from the former Chief of the SEC's Office of Internet Enforcement (for 11 years) and 18-year SEC Enforcement Division veteran. 🧵 Web3, Crypto, DeFi, etc. solve no societal problem and provide no tangible or otherwise worthwhile use. The only use today for crypto is for speculation, which benefits no one and causes financial ruin to people who are the least able to afford it.

The SEC denied @Grayscale's application for a bitcoin ETF, refusing to allow the Emperor to sell his new clothes in a trunk show. I worked at the SEC for 18 yrs, the last 11 as Chief of the SEC Office of Internet Enforcement. Here’s my take on why the SEC’s denial was spot-on.🧵 The 86-page SEC order presents an exhaustive explanation of why a bitcoin ETF would not meet SEC requirements that the rules of a national securities exchange be “designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest.”

Been a tiny part of a Twitter battle involving famed Silicon Valley journalist @karaswisher. I served in the SEC Enforcement Division for 18+ years, the last 11 as Chief of the Office of Internet Enforcement and have taught cyber at Georgetown and Duke Law Schools for 20 years.🧵 Disappointed fans of Kara's (including me) have criticized her popular podcast for accepting advertising dollars from crypto firms. The advertisement in question urges people to put their retirement into crypto.

https://twitter.com/agraham999/status/1528539712314413062

The Federal Deposit Insurance Corporation ("FDIC") just issued a Financial Institution Letter ("FIL") articulating its expectations of FDIC-supervised institutions with respect to any and all crypto-related activities. 🧵

fdic.gov/news/financial… The FIL expressly notes a litany of crypto-related risks that have triggered material FDIC concerns, including safety and soundness; financial stability; consumer protection; ownership issues; money laundering; cybersecurity weaknesses; credit risk; financial stability and more.

I Worked in the SEC Division of Enforcement for 18+ yrs and met thousands of victims of securities frauds. Always sad and often haunting. None would have lost their money if they had followed these 6 basic rules of investing. (Crypto/NFT/WEb3 investors, fail not at your peril).🧵 Choose your investment like you would a doctor for heart surgery. Do not rush. Understand all fees involved. Do not work with anyone w/ any disciplinary history. Consult with experts and people you trust, who are impartial and unbiased, who have only your best interest at heart.

I worked at the SEC for 18+ yrs, the last 11 as Chief of the SEC Office of Internet Enforcement. I have taught cyber law at Georgetown and Duke Law Schools for 20 yrs. I spent 5 yrs at Stroz Friedberg fighting cyber crime. Why I believe the bulk of Web3 is both scourge & scam.🧵 A fractionalized link to a JPEG of a "bored ape" with funny glasses and a colorful hat is not a sound investment, sensible means of commerce and prudent pathway to live out the financial dream.