We get it you don't like Havelock. No reason to make up hypothetical situations. I don't understand how bitfunder could operate as a fractional reserve but ukyo.loan most likely did. And there is not a single shred of evidence that suggests Havelock is doing so.

Havelock and Bitfunder are different on so many levels it makes no sense to compare. Bitfunder was run by 1 guy in a country that clearly states that all securities/exchanges must be registered with SEC. Havelock is a team who has been running a legal operating exchange in panaman since 2008 merged with a bitcoin security exchange that has been operating smoothly for more than a year.

Part of being a registered exchange in panama is the requirement of $25,000 iirc and there are names attached to whoever registered The Panama Fund, SA. Unlike Bitfunder there is a physical location and contact numbers.

Again to this day we have no idea why bitfunder or even btct.co shut down as neither burnside or ukyo have clarified why.