Comment by LeafGuild

It is absolutely a blockchain failure. Blockchains are intentionally designed to facilitate this. They have no possible way to stop this kind of fraud. Even if you built an elaborate set of smart contracts that could audit participants, they would still not stop anything. That activity can just be moved to another chain and avoid the audits. This kind of thing can just keep happening over and over again, as it already has for the last 12 years. Remember Mt Gox? Nothing fundamental has changed about blockchains that could ever prevent this from happening. It's viewed as a feature that everyone just loses their money sometimes. The designers of blockchains want this to happen. From speaking to them, they view any kind of fraud prevention as an affront to their definition of "economic freedom" and what it entails.