Even if this were true, you have no right to keep his deposit.
But it's already written in the T&C at the moment (I don't know if this confiscation policy was made since it was added recently).
Thats the thing if its been altered before the incident happen.
Does it really count if those alts havent been used and just focus on the last account he had made? unless if theres abuse that had been spotted then
its understandable on such lockdown.