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Isn‘t it technically the same? Your deposits would be used to pay back the banks debt before it would be given back to you? Yes, it‘s rare but the process seems

• JumpCrisscross 4y ago
  > Your deposits would be used to pay back the banks debt before it would be given back to you No. In most systems, depositors are first. In America, banks don’t go bankrupt, but instead go into court-supervised FDIC receivership. I have some sympathy for those who lost money in the first few crypto failures. At this point, it’s fools being separated from their money.
• pjc50 4y ago
  Your deposits are bank debt. What happens in these situations is that liabilities (debts, including deposits, unpaid wages, rent etc) exceed assets (cash, investments), usually because some of the investments turn out to be worthless. So you get whatever fraction of the deposit that can be covered by the sale of the remaining assets. This is why Western governments have bank insurance schemes to make the depositors whole in these cases.