What happens to your Staked Crypto if the CEX “dies”/bankrupts/ceases to exist?

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So basically the title. If you have a non-negligible amount of Crypto staked (locked) in a well-known centralized exchange in order to reap that APY. As you may know, those Cryptos are locked until the merge and there is no way to “unstake” them or get them out of the exchange until then.

However…

What happens to my Crypto if, let’s say, that exchange becomes insolvent, goes bankrupt, gets hacked, all the staff members quit, etc?

Is there any way to access those Crypto or are they lost/locked/kept by the exchange forever?

They are saying to achieve 5% APY they loan out the Crypto to short-sellers who pay a % fee to the CEX to borrow the Crypto in which part is returned to you like the 5% APY.

And they are raising an issue with this as the short sellers are borrowing the Crypto to sell in the hope to drive the price of the Crypto down to then be able to buy back the Crypto at a lower price to be then returned to the CEX.

People really should learn about what happened with Mt. Gox. “NoT yOuR KeYZ, noT yOur CryPTo” sounds like an overused mantra but they are the words to live by in the crypto scene.

From 1 February 2014 until the end of March, during the period of Mt. Gox problems, the value of bitcoin declined by 36%. The United States Department of Justice identified Alexander Vinnik, owner of the BTC-e bitcoin exchange, as an alleged key figure in the laundering of Mt. Gox’s stolen bitcoins.

Mt. Gox took a devastating hit in the largest bitcoin hack to date. Hackers accessed and stole 740,000 bitcoin from Mt. Gox customers and 100,000 from the company itself, roughly the equivalent of $460 million at the time. The event quickly spiraled out of control and the company was bankrupt by the end of February 2014.