Kind of like your savings account belonging to the bank?
Pretty crazy?
“Kind of like your savings account belonging to the bank?”
that’s actually correct, but the difference between banks and crypto exchanges is that if an FDIC insured bank goes broke and/or steals your money, you’ll get it back anyway (up to the FDIC max) because it’s insured by FDIC ... PLUS, FDIC banks operate under stringent Federal regulation and are regularly audited by the Feds, so the chances of theft and/or failure are very small to start with ...
also, FDIC banks segregate customer deposits into separate accounts, whereas crypto exchanges co-mingle ALL of their “deposits” into one or two gigantic “wallets”t that THEY own ...