. @Bitfinexed lays out my hawala theory for a current Bitcoin exchange's operations ( https://twitter.com/patio11/status/910353790901026817 … ) and the liquidity risk consequences: https://medium.com/@bitfinexed/the-bitfinex-dilemma-blow-up-now-or-try-a-hail-mary-to-retain-in-business-10b9d989359f …
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Given any catalyst where people say "Uh oh, then I have to take my assets out of deposit to avoid having a worthless claim against a foreign entity", you get a classic bank run.
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Examples could include e.g. rumors of government seizing or inhibiting access to any one of the accounts, solvency worries on unrelated operations, yet another hack, etc etc.
End of conversation
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