Customers will get "full compensation" of what was in their accounts, eventually but their consequential losses for not having money in the meantime are unlikely to be covered.

> That seems a lot better than “everything is irreversibly gone” failure mode of Bitcoin which hopes that the victims will successfully track down and sue the culprits, as seen in the many failures so far.

I don't really disagree, but bitcoin does give you more control over your own destiny. If you're smart and hardworking enough to store your own bitcoin securely, you can do so, and no-one can take it away from you.

> It also sounds completely unlike the naive framing above alleging that bank employees are able to take your money

That was those customers' experience - someone at the bank pressed a button, and now they can't exchange their money for goods and services. Eventually the wheels of law will grind away the bank and return those people's money, but that doesn't necessarily help them right now.

Which is so far beyond what normal people will ever be capable of doing!

> That was those customers' experience - someone at the bank pressed a button, and now they can't exchange their money for goods and services.

No, the claim was that it was 'gone', it's not.

If their balance is showing negative and they try to withdraw money and fail, I think it's fair to say their money is gone in every meaningful sense. Likely they'll get it back sooner or later, but at the moment it's gone.

It seems very unrealistic to assume to 0.5% security and operational expertise for anything pitched as a general solution.