Well from your perspective yes on the surface it is wrong but we have no idea what they will say in their defence. If they open an account here and post about it we can ask them for their version of events.
If what you stated earlier is true, maybe they are thinking if they returned your deposit they are sending out the wrong signal to members they suspect of trying to scam them. I am not saying what they did is right or wrong, all I am saying is we should hear from them. Personally, I would at least return the deposit and close the account but many of these online casinos are like the wild west they do whatever they want.
it's absurd to take all the player's deposit and winnings and give a ridiculous nonsense excuse