Right now they claim they are not insolvent and that they halted withdrawals only because of "compliance suite upgrade". But many people in the crypto community, including me, do not buy that story. That said, when withdrawals start going through again, quite a lot of their users might be scared to use the platform again, and they might pull out, which could put the exchange in danger of bankruptcy, if they are not there already.
The fact is this whole stuff and gist wouldn't actually go viral if they are not at the verge of bankruptcy already. It's just a matter of time before the effects of the whole problem surfices. The most retarding thing about the whole thing is that they actually would end up paying the price at the detriment of their users and customers.
The funniest thing about the whole story is even after this there are people that will still store their coins on a centrallised exchange all in the name of it's safer. I think it's actually high time people saw the bigger picture about what privacy and ownership of coin is all about.