this post was submitted on 25 Feb 2025
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I would say it is specifically a problem with crypto, i addition to what you said.
you wouldn't be able to do the above with a bank. They'd just make the transaction not to have happened.
with crypto, e.g. btc, you'd have to convince 2-3 of the big mining pools to undo the transction, so random private actors. and it undo all other transactions done as well.
maybe that it happens is not due to crypto. That it cant be remedied is certainly because crypto.
No, in almost all cases they simply create another transfer to reverse it. If another bank is involved, they typically pay a fee to that bank to do it.
Source: I work in fintech. I've seen plenty of messes the banks clean up this way.
Yes that's what I mean. But with crypto, not being able to reverse a transaction is one of the main features and makes this kind of thing immensely easier.
Banks can and certainly have lost large amounts to bad actors who were prepared enough to immediately move the money around and clean it, like what was done in this case.
Doesn't really happen these days anymore. Banks have tons of risk checks these days and will usually hold any influx or outflux or money to other accounts.
And even then, banks have rules for how to deal with transfers that shouldn't have happened. In most cases, these transfers would be reversed (for a fee).