This is definitely not shocking to me. It's very obvious now that centralized exchanges / service providers will do anything just to trick users to patronize their services. If FTX went as far as publishing insurance numbers out of thing air with no actual asset to back it up, I'm convinced that some CEX available today still indulge in those practice.

In response to FTX collapse, tons of exchanges rushed to start providing proof of reserves. The way it works is that they simply publish some numbers at specific intervals - they leave no way to verify but want users to trust them.

 "Here's the numbers: trust us, we already verified the numbers so you don't have to. "