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But they're meant to store the customer assets in a cold wallet. They're not meant to invest them in illiquid assets that would need to be liquidated to give pe
by viscanti 4y ago
But they're meant to store the customer assets in a cold wallet. They're not meant to invest them in illiquid assets that would need to be liquidated to give people their money. If it's not a contradiction, it's an intentionally misleading statement to avoid admitting they let Alameda Research invest the money when the entities are supposed to be completely separated.
- shawabawa3 4y agoThe extremely charitable read is that 1. They have all the funds 2. Many are in cold storage or otherwise inaccessible in short term 3. Their cold storage restore process is so slow they need emergency help to provide liquidity in the meantime Seems more like that they've either embezzled client funds or been hacked/lost some cold storage keys
- viscanti 4y agoIn that scenario they could point to some of the wallets to help calm the fears the money isn't available. Or they could approach a number of different lenders who would be comfortable lending at high interest rates if the money is there but slow to access. They only sell if we're in the non-charitable case.
- astrange 4y agoThe normal way to handle this would be insurance or a line of credit, not selling your company to your competitor overnight.