Why was this person experimenting with $500k? Even with traditional ACH I send a $1 test transaction before any significant sum. I also use the “don’t fuck with paste” browser extension to ensure there are no typeos in the routing or account number, but just the same I still want to see a transfer work before I send a significant amount. With crypto where everything is much more complicated, there are no do-overs, and no bank to step in and undo a mistake, I’m even more cautious.
I think this more a story of poor risk management.
But they are in good company. I was on the Bear Stearns trading floor when they went bankrupt and I saw a hundred people loose their entire life savings and all their kid’s college money in a few hours. Those were licensed financial experts that were fully knowledgeable and practiced in a variety of risk mitigation techniques - which they failed to apply to their personal portfolios. The company was bought by JPMorganChase and a year later everyone that came over from Bear was gone - JPMC really just wanted the client list and their midtown office tower.
I think this more a story of poor risk management.
But they are in good company. I was on the Bear Stearns trading floor when they went bankrupt and I saw a hundred people loose their entire life savings and all their kid’s college money in a few hours. Those were licensed financial experts that were fully knowledgeable and practiced in a variety of risk mitigation techniques - which they failed to apply to their personal portfolios. The company was bought by JPMorganChase and a year later everyone that came over from Bear was gone - JPMC really just wanted the client list and their midtown office tower.