Poloniex declaring bankruptcy.
What's wrong with that? It would still be better than keeping the business running as usual as it is. At last, the world would be sure this won't happen again.
There is nothing wrong with this per se, but I would repeat that I do not believe this is a winning case. I would also repeat that I believe the right thing to do is Poloniex to cover the losses, I do not believe they are legally required to do so.
If you did bankrupt Poloniex, I believe you would spend a lot of money out of your own pocket doing so, and any money you do recover would probably not cover any legal expenses you incur.
That depends on how Poloniex is set up. If the money of customers' is in custodial accounts, (which i think might be required by law?) then in the case of a bankruptcy, those funds won't/can't be collected, and will be returned to the account holders.
I am curious to know why you believe "haircutting balances with a generalized loss" is illegal in the US. I think this is exactly what happens to depositholders at banks whose deposits exceed FDIC insurance limits when they fail.
Hmm. It was only socialized between other margin traders right?
Still, scum behaviour.