In the future there will be billions of dollars stored in Wallets, what if one day they decide to stop and shut down their services and transfer all the money to their own wallet and confirm the transactions and convert all of their coins(Bitcoin and any other Altcoins) to USD and disappear?
How can we get our money back? whom can we sue? how can we prove how much coins we had in their wallet?
Some cryptocurrrency exchanges are regulated by governments, meaning that the government know who owns that exchange so this is probably an unlikely scenario. If a regulated exchange do this, of course it is easy to sue them. And also, if they will take all the cryptocurrency on their service and sell it for fiat, it is now possible to trace the person who did it. But as an investor, if you really care about the security of your coins, why would you trust other services to do it for you if you can secure them by your own? many people are missing the point that exchanges and wallet have different functions, exchanges should not be used as a wallet, it should only be used for trading.