Military Industrial complex doing great! The whole US economy definitely isn’t one huge grift that produces nothing, no sir!

And of course I think that#s a good thing. To be clear here. I’d ather these bozos embezzle every dollar that exists then actually make weapons.

even the most barely functional capitalist country would have given this guy a felony after the Synapse fiasco. its entire premise was taking advantage of FDIC bank underwriting by the feds to distribute funds for people with more than $250k (single) $500k (joint) across many institutions, which is technically legal but shouldn’t be an automated “private service”. like jesus, just hire a big law firm to handle it.

for those that don’t know, the FDIC was created by congress 4 years after the Great Depression. it said if a bank followed certain rules and filed the paperwork, the US treasury would back any individual’s deposits in said bank up to a limit. so if the bank shit its pants, the feds would cut you (the depositor) a check for your owed balance. it was to shore up the banking sector so people would feel safe putting their money in a bank again.

if you suddenly get a windfall of a million dollars, to be tinfoil hat safe from a banking collapse, you would split your deposits across 4 distinct banks ($250k each) because the FDIC limit is per individual per institution.

what this guy’s “business” did was try to automate that process and create / use single accounts for rich people with shitloads of liquidity (for whatever the fuck reason) fragmented across thousands of institutions, because opening a new account with an online bank and depositing the money usually takes like a little bit of effort and you gotta set up transfers in their platform to get money back, which takes like a business day. i cannot imagine a scenario where i would want some third party to handle all that for me and let me access lines of credit for instant payment using crypto, unless i was literally like the main stem northeast corridor hub for black market shit like container ship human trafficking or palettes of drugs and needed to randomly wire $4 million to someone who doesn’t touch cash.

if anybody bothered enforcing laws, i am sure the business broke some serious federal banking laws, which are pretty strict in the US to maintain functional surveillance and prevent anonymity when moving money around and structuring that movement to avoid certain flags.

anyway, the tech apparently either sucked (or worked perfectly), the platform crapped itself, and like $100 million is still missing, with several institutions pointing fingers. it was a shady as fuck company for shady as fuck customers, and a shitload of money was stolen. how this guy didn’t go to jail and get shadow banned by every bank/creditor as a radioactive client is a testament to how absolutely unhinged our financial sector is. i mean, maybe that’s why he “needed” to borrow from his own company to buy a house instead of just using a bank like everybody else?

nevermind that he is the CEO and only board member of this latest company. i’m pretty sure that’s like a textbook case study for when a court is going to pierce the corporate veil ignore his little fig leaf. like damn, most bullshit corporations have a bunch of hired lawyers on the board that just do what they say to maintain protocols and voting.