Exchanges don't need to take your money on deposit with them; it's already been given to them when you deposited it. It's then in their "possession" (insofar as someone can possess a virtual currency), they simply have a corresponding liability to the user who deposited it.
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The exchanges do have, as you point out, a liability they undertake in exchange for the benefits they receive, to protect the money of it's owners. It's a direct violation of their fiduciary duty to protect the rights of the money's owners to take the power to vote that money avails it's owners and use it. Worse, they deprive the owners of the money itself by powering it up. While there are claims that power up will be for a shortened period, presently it's 13 weeks.
Do you claim that banks holding deposits should be able to purchase stock with it and vote for directors of boards? This is a nonsense claim, if that's what you are claiming. Such abuse of fiduciary duty has never been upheld by a court as lawful.
These are significant lapses of duty, and exacerbated by the fact that it's not merely negligence and failure to protect, but deliberate and intentional deprivation of the owner's of the benefits exchanges are obligated to provide.
I call it criminal fraud.
Be interesting to see if these exchanges broke any financial rules/laws. Unfortunately I don't think they are regulated to where they can be charged (please correct me if I'm wrong). But now everyone should know "never trust your coins to an exchange "
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I have no confidence in governmental agents, but civil action will be likely to have nominal grounds to proceed IMHO (IANAL), and the blatant theft of these funds will strongly favor the plainfiffs that have provably been harmed by the takeover of the blockchain this theft caused, even if the funds are eventually returned.
These exchanges took the money and acted as if it was theirs, and are STILL depriving the rightful owners of that money full possession and use of it. That's theft. They should go to jail AND they should pay damages.
heh