Surrendering the funds to a second party by depositing them to an exchange deprives the "actual owners of the funds" their right of private ownership of those funds.

Money in the bank isn't your money. It's the bank's money, and a corresponding liability to you.

https://en.wikipedia.org/wiki/Possession_is_nine-tenths_of_the_law

https://sneak.berlin/20191119/your-money-isnt-yours/