[C19fan]

Calling these entities “exchanges” is a fraud. An exchange is a place where buyers and sellers meet to trade, for example, the New York Stock Exchange. I never heard of an exchange experiencing an ole fashioned bank run. The reason is these crypto “exchanges” are in fact fracticional reserve banks.

[cgbg]

If the New York Stock Exchange banned margin transactions then your description would be correct.

With panic and margin calls collapse is always possible.

[Theoria]

They were promising 8% return on deposits. Madoff would chuckle at that. Morons didn't do dd and didn't ask how they were gonna return 8%.