Apparently, the funds are self-funded and designed to safeguard users' assets against hacks, harsh market conditions, etc.
What happens if the safe funds are hacked?
Because if you safe guard your safe fund with the same tech your guarding your customers funds then they are just as easily to hack, right?
According to Coinmarketcap's data on December 7, Bitget's total reserves exceeded $1.7 billion,~reaffirming its dedication to comprehensive transparency through a total reserve ratio of 171%~Established in 2018, Bitget is the world's leading cryptocurrency exchange and web3 company. Serving over 20 million users in 100+ countries and regions
So 20 million users, that makes and average of $70 per user in reserves, and since those are ~171% of user funds means the average users there has $50 deposited.LoL...how did they even manage to get that? One user putting in $1000 means 20 need to have 1 cent!
The SEC crackdown and compliance issues only apply to CEXs that want to establish business in the US, but outside the US CEX is free and will not be pressured by the SEC as experienced by Binance and other exchanges.
Oh yeah, the evil SEC and regulations, you know what regulations the SEC wants to impose? The same as Japan!
And speaking of Japan, you know which FTX clients have their funds safe? The ones in Japan! You know which exchange fled Japan because they didn't want to separate the clients funds from their other business? Yeah, Binance!
Yeah, keep cheering for exchnges that are free to do as they please, we know how this ends!
The SEC's action will not affect the Exchange for the whole, they have a limited working area only in the US and see how currently, there is no major impact after the SEC sued Binance, instead Bitcoin today reached $40k++.
That's because CZ and Binance are like cancer cells of course things are better with them turning to nothingness!