But we can't deny its more safety to store in the bank than those CEX since those legal institutions cannot easily break away and turndown there depositors since they get easily caught up also there's insurance will cover to those people if there's bad happens on the bank. In Cex we cannot do anything if they turn scam and its not really a good comparison since bank is more legitimate option to store our fiat while CEX is been discourage to do it if we are a holder since to many risk and the owner of that can control their site then decide if there users can withdraw or not. But the end of end still we should not trust any crypto site even if they are trusted or not due to many possibilities it could possibly happen.
Well also banks can close down but normally you are always more protected and even if they fail, the government backs up your funds to a certain amount (at least that is the case in Belgium). These last couple of months, a lot of CEX have been closing down including ones that I didn't really see coming such as Bittrex so we always need to be carefull and not store too much crypto or money on these sites.
Well, aside the fact that in previous times, alot of exchanges have closed down by either them getting hacked, or mismanaging users funds, for the ones that are hacked, it's very understandable why they were able to pay back users who were affected even though some still did.
And for those who mismanaged users funds and went bankrupt, like FTX, such exchanges are the real problem with crypto.
Exchanges that declared that they are closing down, like bitterex and some other exchanges did of recent, all are allowing users to withdraw their funds, and in full as well eve though users funds are not backed on any of this exchanges.
So, let me say that, even though we all are advised to never leave funds on exchanges, I personally will still commend so many of the exchanges that have shown honesty in their operations, even in hard times, they kept their integrity intact.