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You take out a loan with your bank and then you buy sats. You put these in FTX because Udi said so. FTX then gives your sats to Alameda. Alameda then does a 120x leveraged short on BTC with that, and... quadruples your stack. From that, and your initial deposit, they buy a golden dildo, but it only covers half the cost. The other half is on credit from Tether. The dildo then explodes while in use and everyone is dead; all these promised gainz are gone and so are your sats.
Reg E covers none of that, but it's a nice thought that at least Tether won't sue you for the other half of a golden dildo.
Maybe a custodian would be similar enough to a bank for it to apply.
“Sorry Coinbase, I’m declaring my credentials stolen so you have to refund my last transaction, even though it easily could have been with myself.”
I'm confused about how Reg E would apply to bitcoin anyway. Who exactly is there to hold liable if someone steals your funds? The app developer? But they build a software, not a bank... it's a different category altogether.