Centralized exchange controls lots of investors funds making it site of attraction for hackers who continuously device means to pull funds from the centralized exchanges. You all still remember the 24th Feb. 2014, Mt gox exchange hack? Where huge amount of money was lost to hackers which lead to BTC drastic price fall.
To avoid stories that touches, I suggest holding assets in Decentralized wallet. Remember "Not your keys not your wallet"
If we are talking about decentralised coins like bitcoin and using these centralised exchange then it's completely depletes the base purpose of them and we should avoid using them for many other things also.
We all are aware about they control the keys to our funds but over the top they also act as banking institutions restricting users from withdrawing their funds and also freezing your account as we have seen during many times for example the war cricis between Russia-Ukraine.So what type of security we are expecting from these CEX ? They ask for KYC norms and then are also selling our information on the dark web and to the government agencies keeping track on out financial activity also.They need profits and keep running so they will follow government orders only so yes this is what all the CEX are doing at this time.
They file for bankruptcy your funds got dissolved and you won't get anything back but notice that if your have stored your funds in hardware wallets or some non-custodial wallets then they might be safe.
Go through this threads for more information :
Recent events should make you withdraw all your coins to your own wallet: Part 2 Another signal why to avoid CEX...Use of hardware wallets with backing up your seed phrases is recommended because your funds are your responsibility and storing them on these CEX is like giving away to them your hard earned money.