I've had some loan repayments come in, and will be setting up a batch of pro-rata payments today. yes, there are a bunch of cascade defaults occurring, and there is a healthy balance of people that have asked for their deposits returned.
If it were me, I'd ignore withdrawal requests after default was announced and make pro-rata payments as repayments come in. I don't see anything wrong with splitting your losses with your depositors. Their decision to invest was just as bad as your decision to offer the service.