Not only you. I believe most forum users don't know what is hiding behind their TOS Power. Their TOS is their power. I had a little conversation with o_e_l_e_o here, and then I decided to create a new thread to give a warning to forum users about the TOS of Centralized exchanges. You can find it here;
Do you know what is hiding behind the Centralized exchanges User Agreement?. Guess what? Very few people read that, and I don't think people are interested to know what is hiding behind their TOS.
Still, I hope people will search on the internet, and I hope they can find my topic in one of the search results. I can scream and write TONs of words on the internet, and people won't read and hear me until they suffer from the same thing. At least you read and responded here. Many people don't.
You always have options on the market. Centralized Exchange's trading volume is huge (Over 99%). You shouldn't hold your funds there. You can use them to exchange your coins unless you do not have any options out there. Still, I would suggest avoiding them if you can.
It's an interesting thread but we shouldn't confuse theoretical legal terms with reality IMO. Exchanges need to protect themselves against abuses and lawsuits but they mostly need to make business, and fortunately you don't attract customers with nasty commercial behaviours, bad reputation or scammy practices.
For example, you've quoted the ToS of Binance in first place but actually they seem to be far away from applying those terms so strictly according to the CFTC.
Whatever you say, I don't want to give them extreme power by blindly accepting all of their TOS. You may say they are not practicing such things with their users. Well, they do. Binance had a bad habit of applying their Controversial TOS against their users. During the Dogechain upgrade, Binance Mistakenly did some transactions twice a few years ago. It was their developer's mistake. To recover those funds, Binance locked their user's accounts and asked them to deposit to unlock their account. Imagine you withdrew 500K Dogecoin to an unknown wallet address about a year ago. After a year, Binance sent another 500K Doge to this address, and now they ask you to return that amount. You may don't have access to this wallet anymore. How would you return them? Also, There was a massive pump of Dogecoin. Just imagine your 500K Doge was worth $100 only. But, when Binance asked you for a refund, 500K Doge was worth around USD 80K.
You can read more here
https://bitcointalk.org/index.php?topic=5370726.0This is the result of the Ultimate power of Their TOS. They blocked the user's account and confiscated the funds for not refunding the money, which was sent to an unknown address.