When retail investors see an exchange facing FUD, their first instinct is usually to withdraw and run—no questions asked. At the early stages of rumors spreading, retail investors don’t have the ability to verify whether the news is true or not, so they’d rather believe it’s true. If the issue turns out to be real, your losses could be massive. If it’s fake, withdrawing only costs a small transaction fee. If this CEX is fine and survives the test, you can always deposit your funds back later. There’s no need to become overly reliant on any single CEX. Back in 2021, I met a trading pro who had over $4 million USDT in FTX—that was all his money. In 2022, it was wiped out in one go. I haven’t kept in touch with him much since, so I don’t know if he ever recovered his claims. But I’m sure the years after 2022 were incredibly tough for him, and he probably missed out on a lot of opportunities.