Surprised that customer positions aren't considered loans with first rights over all other lenders in a bankruptcy proceeding. The company shouldn't be playing around with these, but based on this statement it sounds like they are doing something odd and trying to run a fractional reserve system, or leveraging customer deposits for other high risk activity such that the money may not be there.
Makes me think that I should move my crypto back to my own wallet/sell the crypto.
They don't have my keys, but they are holding the asset as a custodian. From a practical perspective, I'm not certain they are actually holding my BTC in a dedicated wallet or a central wallet with an off blockchain ledger.
Makes me think that I should move my crypto back to my own wallet/sell the crypto.