Exchanges like fixed float shouldn't be taking advantage of customers but they don't care. Punishing eXch's customers by freezing funds because they won't give KYC or proof about funds proves they're scamming. I don't believe their hack story I believe it's an inside job.
They said they are basically freezing the funds received and keeping the funds for themselves. Punishing the customers of exch, not the hackers from bybit.
If they are
keeping the funds for themselves, then they have to be reported to the police, because that is fraud.