I've used exchanges and will continue to do so as warranted, but leaving funds on them for any substantial time is ill-advised, for this exact reason. These hacks not only injure the victims who lose crypto, but also damages all holders of cryptocurrency as credibility takes a hit, and with it, its value.

One thing though about stealing bitcoin, and most other cryptos, is that the wallet to which the stolen crypto is visible on the blockchain registry. All bitcoin transactions are visible in this way. Without any more information, this does not allow the crypto to be recovered. However, any further trasactions made from that wallet holding the stolen crypto ARE visible, along with the subsequent wallets the transfers are made to. So if any subsequent transactions are made to a known business entity or person (a receiving wallet in known to belong to such an entity) then it gives a lead to discovering the perpetrators. Law enfoncement could contact the receiving entity and potentially obtain the identity of the sending party, and follow the scent of the transactions upstream to the person controlling the wallet originally receiving the hacked bitcoin. This could be done any amount of time after the hack, even many years.

So stealing bitcoin is not like robbing cash from a bank. Cash is largely untraceable. Bitcoin is certainly traceable, if on its face, also anonymous.

also anonymous.

It is anonymous until someone tells about the transaction. ;)