gate io scam or hack

Gate.io exchange has notified me via email that my account security settings have been changed from SMS to 2fa, and my account has been locked. I emailed them that it was not me who changed the security setting. They responded with your account has been hacked and Gate io security settings in place has prevented the hacker from removing funds.
After submitting my picture for KYC1 with my gate Id number in the picture, the one on the email, and also my license I was given access to my account. When i signed on all my funds except a few tether dollars were gone. I looked in transaction history and all my funds had been turned into MXR. Then the withdrawal section showed MXR #jkhkjhkljhlkjhsnnsioiowsdsmllj blocked!, KYC2 is needed for withdrawal.
So I submitted the needed 5 picture display of hand signs to represent my gateio number and waited. At first they made me do the pictures a second time claiming the image was not clear enough
This is what i found! everything converted to MXR and ready to withdraw , but not without The 5 pics, KYC2, with hand signals first.

Gate.io has frozen US and Canadian accounts, by changing the security settings. Users were allowed to use sms instead and many have chosen to. Now when they try to log in they are stopped by the 2fa request. They are locked out. How unethical, right. Gateio sends one email saying your account has been disabled do to security settings. China claims to be doing this to comply with Chinese law yet I've read in many places that they are located also in Virginia of the US? Gate io claimed that my account was hacked.I believe a lot of Americans and Canadians have been motivated to eliminate their accounts this way. I also think the majority of gate io users were lulled into thinking its all safe and secure at the Gateio exchange, because thats all we read on the internet about that exchange.
The process took a few weeks and seemed like an eternity. Email response took 24 hours for each submission. This exchange is under the central authority of the Chinese Government. Thats disconcerting because they could seize the funds and claim they warned us, when in fact all adds and marketing expressed gateio is respectable and trustworthy? China has not always been friendly with the US. How confusing. The bottom line stay away from this and all Chinese exchanges until we are sure their government allows this and can be trusted.