It wasn’t “repaid”, the FTT was posted as collateral for the loans (customer deposits). But still, should be fine at that point, right? The loans are nice and

It wasn’t “repaid”, the FTT was posted as collateral for the loans (customer deposits). But still, should be fine at that point, right? The loans are nice and overcollateralized, what could go wrong? Problem is that FTT is itself a bet on FTX. So if the news comes out that FTX and Alameda have these shady linkages, some of your customers will want to withdraw—and at the same time, FTT will fall. Oops—the value of that collateral just crashed and now you don’t have enough assets to process the withdrawals. Which makes FTT fall more, and more people want to withdraw. It’s not like some fluctuation in Bitcoin price, where maybe you could get lucky and wait for it to come back up. FTT is just a bet on you, and you can’t process withdrawals, so why would that ever come back up? And now you’re insolvent.