Get your funds out ASAP once withdrawals become available on Binance

First a little backstory. I was a victim of the FTX fallout.

Still remember this clearly. Started with CZ saying it would sell its large portion of FTT holding. Also, there was an article about the balance sheet of Alameda Research (SBF's trading firm) being backed primarily by FTT token, the token FTX had created itself. And then.... the classic bank run.

SBF assured us (hodlers) that everyone will be able to withdrawal and there would be no problems. I wasn't buying any of that bullshit and withdrew my cash/crypto instantly. The only asset I couldn't withdraw were the FTT tokens themselves, because I had staked them for the yield and discount on trading fees. And then withdrawals suddenly stopped after a day or so.

Yes, CZ is saying your funds are "safu" - but not when EVERYBODY panics and withdraw their holdings at once. I guarantee you CZ is using a portion of your funds to generate yield - perhaps in commercial papers, investments, etc. This is what a bank run is, your bank has your money but it's in investments (illiquid). Just like the bank run scares we had back in 2022 - the banks have your money, but they would be taking a loss by selling HTM (held to maturity) securities by selling them prematurely (due to yields rising because of inflation).

TLDR: Please don't take the risk and WITHDRAW immediately once it becomes available and keep your coins in your own wallet.