The future solution for, in some cases, inadequate management with our identity information can lie in NFT-based DIDs (decentralized identifiers) / VCs (verifiable credentials), or i.e. lately proposed soulbound tokens.
On CEX most of the control over the account remains in the hands of the third party which runs the exchange.
As such, this third party can be hacked, mismanaged, go bankrupt, etc.
What we're seeing with the FTX contagion is purely people's fault.
If trust is being misused and eventually exploited for illicit actions, it is very hard to get it back, if at all.
Regardless whether it is in relationship with S/O, any third parties or, in this particular case, CEX.