The problem might be different here, but all the exchanges I have used have ended up dead, and I consider myself very lucky not to have lost everything I had.

First there was MtGox where I happily sold BTC and then waited weeks for a bank transfer that never came. I was lucky to be able to re-purchase some of the BTC (at a loss) and transfer them out. That was just a few weeks before MtGox fell.

Then there was ANX/ANXPro. Everything was fine for a while. Over time, they ceased trading and at some point app and website stopped being functional. I had left some crypto there, at time it wasn't worth much. I panicked once the value shoot up and I couldn't find a way to recover them.

Fortunately, I had chosen ANX because they were local. I went to the listed address there in person, expecting it to be closed. I found the place, it was nondescript, no sign, no-one in sight. I was shaking when I pressed the bell and a guard came to answer. Fortunately, the company was still running in some fashion. There was a counter and I was able to transact my crypto out. Had I not been local, I would have probably lost it all.

Then there was FTX... I traded cautiously last year for a little while, never leaving too much for too long, then decided that crypto was all too nerve-wracking for me and sold everything I had. Probably the best thing I ever did. I have friends who lost big in the FTX debacle and will probably never recover a dime.

The morale of the story is that I wouldn't trust ANY exchange. They move so much money that the temptation is too great not to use it for something else. Despite claims, I don't trust any to have the structure and oversight necessary to avoid misusing funds that don't belong to them.