Binance, which was founded in China in 2017, allows users to trade digital assets and is estimated to have more than 300 million registered users worldwide.

The company said in 2024 that it had more than $160bn in assets under its custody.

A lot of the fear right now from Binance users – and the crypto industry at large – is whether or not Binance will actually be capable of covering this enormous financial loss.

The company has said repeatedly that customer funds will be covered and that the firm is strong enough to weather the storm.

But crypto history watchers have been pointing out online that this is exactly the kind of message that FTX CEO Sam Bankman-Fried gave before his crypto exchange collapsed in 2022, leading to huge losses for…