It actually makes sense if they were “dropshipping” lol, which an exchange might do to increase liquidity. In other words, when you deposited to their exchange they actually held your money and executed your trades at FTX for certain pairs. Then FTX suddenly zeroed everyone’s balances (! or at least many people’s) so their crappy scraping system overwrote your old balance with zero and they have to manually check backups to see how much money you had with them. Definitely possible as an exchange is a chicken and egg problem and they seem to be a nobody.
I think it's safer to assume they saw the implosion of FTX and figured now was a good time to take the money and run. No crypto exchange deserves the benefit of the doubt in the court of public opinion; everybody is safer if they assume all crypto exchanges are thieving snakes.
At the very least, if you really want to be in on the crypto thing, keep the funny money yourself in your own wallet, and wait a few years/decades for government regulation to catch up before you trust any crypto exchange.
