If we take the FDIC as an example of bodies that guarantee customer funds, it has a limit of $250,000, and it does not insure all deposits. Even this limit cannot be guaranteed, as an insurance institution does not receive any appropriations from Congress, and if there was a collective failure of all banks, it would not be able to cover customer funds, and here it is the government that Intervene to fulfill these obligations.
If the same thing happens to cryptocurrencies, funds like SAFU can help with small and medium losses, but if the platform fails and all reserves are stolen, there is no guarantee capable of insuring customers’ money, and the government will not intervene to save your money, and it will bear the entire loss, no matter how huge the insurance fund is.