I'm not sure exchanges gave any money to the back. The FDIC has backed all fund in SVB at the moment. Investors won't be made whole and I think that's the correct move. The whole where is the money coming from is interesting. If the FDIC can make up the funds for any additional failures who is going to cover the costs?
I really don't want to see tax payer bail out the banks like we did in 2008. The market conditions are different, but in the case of 2008 we should have bailed out home owners which would have saved banks. I think the notion that the rich can take hand outs to cover losses while retail can't have handout because they won't want to work or take on too much risk is just BS.
If not taxpayer bailout, then moneyprinting, obviously. So the result will be the same, probably much worse with possible hyperinflation.
I am pretty sure, exchanges have deep connections to banks, they deal with FIAT money, anyway, so they must have money in banks. (Anyway, FTX had bank investor, too. SoftBank, an Asian corporation, owned by 5-6 banks.)
I asked several exchanges, as I did not find any information about it. This is the usual 'answer' I got (this one is from ByBit):
The raw translation: 'Yes, we do, but it is not your business which bank, how much is the amount. Just give us your crypto, FIAT and we will let you know it, when we go down.'
My favorite part is: since beginning they haven't halted withdrawal... :) :) :) like all banks, exchanges, they will hold only once, the first and last time... :) :) :)
I am going to use only no KYC exchanges and those what don't accept FIAT, provably has no banking connections and focus for privacy coins. (If i must use any other exchange to buy crypto for FIAT, it will be very fast, I buy it and send it towards immediately.)