That said, a few platforms actually back it up, keeping funds in BTC, USDT, and USDC, ensuring real liquidity. But even then, the question is: Would they actually use it to cover users if something went wrong? Or is it just another bullet point on their marketing deck?
You have a genuine concern, we should not be fooled by many things businesses claim they are or have, verifiable proof is the only trust we can guarantee, and even if they truly have that funds, how are we sure they will not play smart when the business goes insolvent?
This is where the importance of good regulation comes in, you don't make a false claim, it's the regulator's duty to verify and always make them accountable. Many regulators don't even stop there, you must insure the deposits of your customers/clients, that's what I call true protection.
Unfortunately, exchanges will not go through all that, especially those of global branches, they can do whatever they like without anyone questioning them because no one is checking all this.