Exactly. And if they do, as they put it into their FAQ:
In order to release the Bitcoin from escrow, two (out of three) keys are needed – one belongs to the Borrower, one belongs to the Lender, and the other belongs to Lend at Hodl Hodl
This system ensures that both Borrower and Lender are protected from scams, since no transaction can happen without a signature from two of the three parties.
Unless the escrow party is the scam itself, of course. It might, for example, be identical with the borrower or collude with that party.
Or… it might just be negligent or don’t fulfil their fiduciary properly and safely.
Do I believe the platform is an outright scam? I tend to think it’s not. Though quite obviously it’s run by people who don’t want to be held responsible or accountable.
Was Mt. Gox an outright scam? Probably not. They still managed to lose their customer’s funds. As could happen at hodlhodl (even if they claim not to “hold” the coins), if the escrow key makes it to the borrower - whether that’s through a hack/security breach or collusion.