because I read that aside from a person identity be stolen, they may lost their funds or not been able to access it and this happened to FTX customers
There's no relation between identity stolen and lost funds, but the reason is your identity might be used for bad thing and you don't have anyway to know what does the exchange will do with your identity. What if the person behind the exchange sold your identity or use it to create a scam project where the CEO of the project is your name with your face? if someone report the site and want to lawsuit the CEO, don't be surprised if there's a police arrest you.