I bet there will be documentaries about this. We have them about Enron.
I really want to know what they are doing with the cash people deposit to buy crypto that is causing a liquidity crunch. They clearly weren’t holding the cash and invested it in something that’s lost value. That’s why there’s a liquidity crunch. I wonder how many people who bought crypto through one of these platforms will be wiped out vs. people who have their crypto on their own secure drive. Who’s going to be the Bear Sterns?
The San Mateo, California-based startup said Wednesday that it had raised $150 million in a Series D funding from investors led by GIC and B Capital, a previous investor. Thoma Bravo, Adams Street Partners and previous investors Wellington Management and Tiger Global Management also participated.
If I follow, these geniuses borrowed USD to buy crypto. Then they’d make loans in crypto with the repayment to be in crypto. The collapse of crypto made it so they were being paid back far less then the USD loans they had to repay. That’s why the crypto collapse caused them to insolvent.