I fully agree this sounds like a scam however some new investors could need some help with their first steps. It’s a big step for a newbie to generate a new key and send funds to it. Hence also why so many people just keep their investments on an exchange…
But ok again this is not the way

Anyone who is a newbie should also keep the funds in the private wallet and not in the exchanges but they should generate the private key themselves and not let other people do this task for them.
Services like these will only scam newbies and those who do not know how bitcoin works. That's why its always recommended to first learn and then invest in crypto.