News for hackers. Stuff that matters.
Re:Vauld suspends all withdrawals, trading and deposits on t... by pjc50 on Monday July 04, 2022 @08:06AM (#31976146)
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.

There are no comments on this comment yet.