The real issue is they are using their own tokens as collateral to get loans, just let that sink in for a minute how fucking crazy that is, the fact the risk management allowed this to happen is beyond comprehension, total clown show. All those fuckers need to goto jail. That’s why you never put money in those exchanges outside of US regulation regardless how fancy their marketing / cover is.

Using another example for those of you still don’t understand….imagine a large us bank like chase or citi stating they have 5 billion in asset/collateral, and used to to get loans from everyone/outside investors. But what it doesn’t tell anyone is those 5 billion “asset” is actually its own stock shares.  So if something’s happens to the bank, be it baseless rumor or anything, that cause it’s stock to drop, all of sudden its asset also just got reduced, which in turn will trigger margin calls and negative view of the company, which trigger further drop on its stock….see where this is going.  I work in finance for almost 20 years now and very closely with the risk team, was chatting with them today and they thought I was bullshitting, refuse to believe a bank much less an exchange this size are allowed / are doing this, until I showed the articles, totally stunned just unreal.