Nothing to add to the YT comments, why this is considered normal practice.
BUT: there is something to be aware of, what it means for escrowed money in general. Because you have this situation with every bank. If a bank has a problem with money, it can just refuse to give your money back to you. Same liability with every exchange the moment it is in trouble. Same with every person you entrust with your possessions. As long as everything runs as planned, one is lulled into believing that everything is fine.
Until the day comes when the person gets into trouble. It does not have to be his fault or evil intention. His own ass will be his first priority.