A: "We submit to capital controls and while extremely infrequently our investment groups make (occasionally disastrous) mistakes, the system of human finance is arguably more stable than at any point in the history of our species' efforts to trade with people beyond the horizon."

B: "We bought a house for the founder's parents while they advised ways to hide it and threw millions of dollars at the insolvent-by-design crypto fund of somebody in the boss's polycule."

You: "No difference detected."

For real?

Yeah, for real.

A: "We take customer money and risk it."

B: "We take customer money and risk it."

Just because one puts the money into "safe" investments does not make them any different. It's still a bank doing fractional reserve banking.

FTX: Ee stole money. We lied. We gave it to friends to gamble. Illegally.

SVB: our shitty compliance department bought bonds (a government requirement) with too long of a maturity date to sell in a bank run.

One is incompetent and the other is malicious.

Also fractional banking is literally required by law.