It was a financial institution that took customer deposits and lent them out. Why was it not required to be registered as a banking institution?
Like everyone else in DeFi, I’m increasingly curious about the weird world of CeDeFi, and how exactly this dumpster fire ever allowed to exist in the first place. Personally, I got into DeFi years ago because I assumed the Feds would never let crypto exist above ground (this was the prevailing attitude back then, I think.) I was surprised that centralized institutions got as big as they did over time, and I’m still confused how it happened.