This is being said ever since crypto was born, but after the last couple of days you’ve really seen why.
\- Couple of days ago, Coinbase revealed their huge losses in revenue and profits and disclosed that, and I quote: “Because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors”, which translates to : **”If we go bankrupt you get fucked and we keep your crypto”.**
\- After the huge crypto dip, CEXs all over (Kucoin, Binance, Coinbase) closed down temporarily the withdraws and deposits for “unknown reasons”.
\- After the TERRA problem, people started trading it on CryptoCom and now, 1 day later, CryptoCom started reversing trades (YES, REVERSING THEM) and people lost a lot of money, [check this post]( and the comments.
They can wake up tomorrow and freeze your funds. If crypto goes down 50% more they can literally stop you from withdrawing anything. If they go bankrupt, you go with them.