Given the available information and claims, I think that is the only reasonable assumption at this time until proven otherwise.  I don't understand why the funds haven't been moved to a multisig address and a message signed proving their existence.  At this point, the lack of transparency appears to be willfully disobedient by the escrow agents claiming to be in control of these funds, and worthy of forfeiture of their escrow fees.



I'm still waiting on answers for the first two questions in this thread.  This appears to be the old 'incompetent or scammer' situation.