You're correct, Coinbase should be avoided given all the individual reports of problems with them and frozen accounts and delayed withdrawals, I've never had problems with Coinbase but I've been a customer since 2013 Kraken is great! Gemini is so-so, they asked for more stuff during the new account verification process, but Gemini does offer newer crypto assets and some obscure crypto assets that sometimes take months or never get listed on Coinbase
Google it, or you're not really asking, are you? Anti money-laundering failures from what I remember Why did the CEO's of major banks go to jail for same AML stuff? you know like Wells Fargo, HSBC, JPM, BofA, many others after they were caught, they paid over $400B in fines many years many repeat offenders Why did the executives in these banks, investment firms, rating agencies, insurance companies go to jail? after crashing the whole global financial system, frauds everywhere, excessive leverage, impossible to unwind positions, mbs, cdo's, cds, squared up, packaged up, sold to retail
You are justifying one wrong doing/ short coming because of other shortcomings So if all are crooks < better to go with a regulated Crook! at least some chance of getting something back ( I got 60 cents form a $1 form an OTC broker belly up only because it was regulated in a relatively strict country) any way no point in discussing, you are a believer and and I am not.
Moral Hazard comes to real life. The TBTF banks had the politicians including Bush & Obama in their pockets so they survived by paying meaningless fines to keep on commiting the same crimes over & over. The Binance CEO was a "rogue" player with no political influence hence the difference in treatment. HSBC & Citigroup have admitted to money laundering of drug cartels and they are still around. It boggles the mind. In a related way Microsoft learned the hard way why you should always bribe politicians if you want to survive unscathed.