alt Hacker NewsStablecoins are frozen so the hole will likely be around two billion dollars.
Binance has equity and cash flow cover this, outside the insurance fund.
They custody $150B.
FTX was larger in dollar terms and ecosystem was smaller back in a day.
Replies
weakened_malloc • today at 1:03 AM
they borrowed ETH against the stablecoins on AAVE before they were frozen
pigeons • today at 2:29 AM
Doesn't matter how much they custody!
jazzyjackson • today at 12:22 AM
Uh don’t you not want to cover losses with customer funds?
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This might sound good.. but freezing currencies is bad. It evaporates trust of liquidity from whoever is doing governance. It's part of the reason why the bond market is doing what its doing lately and why countries are on-shoring gold reserves.