The frozen funds are centrally controlled stable coins on Ethereum and other chains.

Bitcoin has no such concept.

Holding decentralized currency on centralized exchanges defeats the purpose of it being decentralized in the first place. Which is why we saw a massive adoption of DeFi and DEXs across the whole industry. CEXs (centralized exchanges) have been getting hacked left and right since their very inception much before LLMs even existed, let alone gained sufficient capabilities to perform such attacks. Mostly due to human error and social engineering, yet they remain the industry entry point for like 80% of both retail and institutions.

Or you could just get real money and keep it in a bank.

To be fair, USDC & USDT are centralized by Circle and Tether respectively, and they can freeze funds.

Less true for ETH (though in the past it forked after DAO hack to revert the txns), and I think never for BTC / XMR.

Could they be making money by manipulating the market? Knowing the price of crypto will fall after it gets publicity?

Forgive me, I don’t know much about crypto, but couldn’t you slowly turn btc to monero or something? Aren’t there p2p ways to facilitate that?

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Wouldn't be sensible to hack Binance, there will be a much bigger payday when cryptography ends.

Nah. Probably not even RIP cryptocurrency exchanges.