[tolmasky]

That's not the situation here. Etsy holds seller payments in SVB in an account, that yes of course, is probably above the FDIC 250K limit since it represents the amount to be paid out to hundres if not thousands of sellers: https://www.nbcsandiego.com/news/business/etsy-warns-sellers...

Without derailing the discussion into whether Etsy "should have known better" (which to be clear is an argument that would be made in a simplified vacuum given the complexity of them probably just being an intermediary between a credit card processor and the sellers and thus it being fairly logistically complicated to set up that intermediary as some sort of multi-bank-account system or whatever), but regardless, even if that is the worst way to do it in the world, the point is that that's not the individual sellers' fault, and they shouldn't be punished for it. Again, as I mentioned in my comment, the position that "Well individual Etsy sellers should really do a financial analysis on the host platform's bank, quarterly, to account for interest rate changes, and if they independently conclude that that bank is unhealthy, they should pull their store off Etsy and... ???" is a bit hard to swallow, and I'm not sure if a world we really want to create.