“The world’s largest crypto exchange will freeze all withdrawals of USD Coin while it conducts a "token swap" to boost its holdings of the dollar-pegged token, CEO Changpeng Zhao said Tuesday.”
Customers pulled $2 billion, and the exchange paused withdrawals because the banks weren’t open yet. A month ago FTX said reassuring things too. A “token swap” is a fancy way of saying the money wasn’t sitting where you thought it was. If you can’t withdraw on demand, you don’t have a deposit.