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Comment by dheera | Hacker News Reader

Presumably they just need to wait until 9am when people at work, so I wouldn't consider that a default.

If they say they need a few hours at 9am, they've defaulted. It would be a big "ha" if they couldn't get them together by 9:05am because they've done shady things with your money.

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Umm.. that's not how banks operate. If I want to withdraw a million in cash, it is reasonable for the bank to ask me to wait until it mobilizes the cash. If they don't let me transfer money to another bank/account, that's problematic.

I'm not a fan of crypto, but that sounds like a stretch. I'm not aware you can go into any bank and withdraw e.g. a million just like that. It could be different in different countries, but there is a limit to what you can get done.

It could be careful manipulation on Binance's part, but we'll find out soon enough.

That's not how banks work. You can't go into a bank and withdraw $100k in cash. Most banks don't hold that much cash.

Yes they do... and if it was an exceptionally small bank that didn't have it at the moment, with a day or two notice, they'd happily give you $100k in cash after receiving it from the Fed or from their vault cash providers. A busy ATM will contain more than $100k and on premises ATMs are often refilled from the bank's vault.

Most Canadian banks need a few business days just for 5 thousand and above in cash. There is more zeros in bank accounts there is physical money in circulation.

Yep it's basically legalized fraud, we take it for granted that that's how the system works, but still fraud.

Rich people like banks can basically create money that doesn't exist, while average Joes cannot.

Do you believe that banks hold every dollar they receive in deposits in cash in their vaults?

Because that's not how banks work at all. They make loans, and if enough people demand their cash back they will have to move things around to honor those withdrawals. That's how every bank in known history has operated.

That's not how banks work

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