You have explained this post very well and I agree with almost all of your points that you have elaborated here in this post.

This is because the exchange holds the cryptocurrency on behalf of the user and is not legally obligated to return the funds during bankruptcy. In some cases, the exchange may require a court order before releasing funds.

Yes brother, you are very right here. The presence of a central authority just like the company team is always a risky situation in the centralized Exchanges.

The centralized exchanges use the assets of the users for their own benefits and during the situations like bankruptcy, those assets are completely seized in the wallets.

Their is a very negative impact of this incident in the overall figure of the cryptocurrencies. The governments should have to legalize the cryptocurrencies to provide a back up in order to prevent such incidents in the future.

Thank you for your precious post. I wish you a very happy contest ahead.