[floor2]

Except, that's how a bank works.

The money in your checking account or savings account isn't sitting in a vault, it's being loaned out to other customers of the bank immediately. But when you put money in an FDIC-insured bank account, you have the US Government guaranteeing that you'll get your money back even if the bank's investments of your money go bankrupt. Also, there's a complex set of regulated and audited independent counterparties with transparency and collateral agreements to separate custody, trade settlement, etc.

When you put money into a Bahamas based entity that is simultaneously the bank, exchange, broker, and hedgefund, you get none of these things, and so you just have to wait until it collapses and then hope to get your money back after bankruptcy court in a few years.