https://www.reuters.com/article/us-crypto-currency-fraud/cryptocurrency-thefts-fraud-hit-1-2-billion-in-first-quarter-report-idUSKCN1S62P3
I still can't wrap my mind around why people wouldn't want to have compliance with AML and KYC to better help that this doesn't happen
Well, the crypto thefts, hacking, fraud and another issues that can cause crypto seems bad to new people, i think that was beyond the scope of AML and KYC. Hacker is not that stupid, using his own or another's people account to stole exchanges assets because the exchange absolutely can track on them. That was the bad step for them. In this case the KYC and AML wouldn't work since hackers maybe just do some direct attack to those exchanges, using new address to receive.
Its just like you didn't use the door, you just break the wall to steal it. I think, recently the best way is just apply for manual processing withdrawal for huge amount