Thankfully Binance holds their customers' funds 1:1. Except USDC, which they've replaced with a different stablecoin BUSD, which is just like USDC except instead of trusting Circle, it trusts, er... Binance.
Rate limited, so to reply to the gent from Paxos: I did check that out, but:
> Binance-Peg BUSD, which is not issued by Paxos and is not regulated by NYDFS, is a separate product. Binance independently mints Binance-Peg BUSD on other blockchains (e.g., BNB Chain, Polygon and Avalanche) and pegs the tokens to BUSD on a one-to-one basis. This allows holders of both tokens to swap tokens between Ethereum and other blockchains.
Obviously even if one believes in BUSD, the matter of someone who trusted Circle having their coins transparently replaced with a different coin using a different trust model is concerning.