WEBVTT

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- So they told users their
crypto exchange wasn't a bank.

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They told users their bitcoin, ether,

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and dogecoin would be safe
on their exchange's wallets.

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They told users they'd be
able to survive market swings.

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But now, there are a
multitude of exchanges

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that have essentially
locked up users' crypto,

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blaming the market volatility.

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So they're not a bank,

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just a set of scummy
backmarket lenders now

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trying to save their own skins.

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CoinFLEX, Babel Finance, WazirX,
CoinDCX, Coinloan, Vauld,

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and Zipmex have all suspended withdrawals

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at one point or another.

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Some, like Binance,
curtailed users' access

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to their crypto for a short time.

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Others are still in the proverbial toilet.

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In either case, you essentially

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had people's money locked from access,

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and of course, users weren't happy.

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But that's not the end
to some exchanges woes.

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Companies like Celsius
and Voyager have filed

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for bankruptcy in order
to save their companies.

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Not even the employees
are safe from this trend.

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Exchanges like Coinbase,
Gemini, and Blockchain.com,

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have announced massive staffing layoffs,

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and thousands of employees

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have found themselves kicked to the curb.

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It's gotten especially bad
since some of these companies

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had previously loaned to hedge
fund Three Arrows Capital,

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which recently defaulted on
its $675 million in loans.

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That failure is set

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to take many crypto
companies down with it.

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Three Arrows founders Su Zhu
and Kyle Davies were hounded

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by allegations they were
trying to avoid creditors

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and crypto company lawyers,

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but they broke their silence last week

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saying the collapse of the
Terra/Luna stablecoin ecosystem

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and Grayscale Bitcoin Trust
were what did them in.

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They told Bloomberg
they're not "running away,"

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but were apparently afraid
the crypto bros are out

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for blood.

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Some of these exchanges
say they'll bounce back,

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though that's a hard bargain noting

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that the price of popular coins

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are still well below 2021 highs.

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Even if crypto bounces back,

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will people be willing to put their trust

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in any crypto exchange?

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Well, they already bought
into the whole idea

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of get-rich crypto to begin with,

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so honestly, I'm not expecting
many lessons learned.

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To read more about this
story, check out Gizmodo.com