Binance is centralized and that's why many are starting to panic when there's bad news about them. What if before the bad news Binance starts to halt withdrawals? Well, that's the real thing but so far, this is just to make a FUD and if the thing is real, Binance will handle it for sure.
Everyone is starting to learn their lesson that no exchange is safe whether it's the most popular and populous exchange, they can't avoid any FUD that will be spread against them.
The recent audit on Binance carried out Mazars also added to the loss of confidence by investors. Mazars couldn't vouch for Binance's reserves and the methodology used in carryout the auditing was not revealed. Customers are beginning to loose trust in this exchange company because they feel Binance is covering up or hiding some of its financial standings. Yes the company has declared that it financially is sound and it has proved over the years to be a pathfinder in the cryptocurrency exchange market but that was the same news we heard before the collapse of FTX. For them to build back the trust clients have in them, there financial standings should be open and not shredded in secrecy.