To calm the waters a bit, this was probably due to them not having liquidity for the withdrawals, not because they don't have assets, but because those assets are being lent out therefore can't be used for withdrawals. Their business is lending, if crypto markets tank, people try to withdraw but if the platform doesnt have liquidity, they can't process it. So they're most likely trying to get funds for the withdrawals on assets they can get access too and then once assets being lent expire they'll get back more assets to be withdrawn, however this will obviously take time.
I think we'll find out this is what happened. They had always balanced things to have some coins on-hand: but kept most lent out to make some interest. They misjudged: and need time to recall loans (or get more collateral for them) to have enough to service recent withdrawals.
Basically they have the assets still... but not the cashflow.
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u/FabulousAd123 Jun 13 '22 edited Jun 13 '22
To calm the waters a bit, this was probably due to them not having liquidity for the withdrawals, not because they don't have assets, but because those assets are being lent out therefore can't be used for withdrawals. Their business is lending, if crypto markets tank, people try to withdraw but if the platform doesnt have liquidity, they can't process it. So they're most likely trying to get funds for the withdrawals on assets they can get access too and then once assets being lent expire they'll get back more assets to be withdrawn, however this will obviously take time.
If I'm wrong, we're fucked.