Every 401 K is differnt your employer knows what you are and are not able to do in regards to being able to get any funds released grom your 401,usally unless you are know longer working for the company or retired then you may not be entitled to get any funds released. You can also go on line and check your 401 K plan and find out your options. Some 401K's will allow you to barrow a certain amount of your 401 K money,but if they do then you would be charged a precentage of that loan to pay back and then it would have to be taken out of your payroll.

Since it is privately held company stock, really they can do with it what they like. Usually this works itself out, but can take time. ( I work for an administrator and see it happen often)
It is not a bank is it?

Generally an employer CANNOT steal your 401k. However, if any employer tries to steal your money, you have some legal rights. The Employee Retirement Income Security Act of 1974 (ERISA) governs 401k plans. If a plan is orphaned, the U.S. Department of Labor (DOL) is responsible for protecting the assets.

For any help, you can call the Dept of Labor's Employee Benefits Security Administration at 202-219-8776 or toll free at 866-275-7922.

So, your 401k account is like any other investment account. You need to understand the risks and manage them in order to protect money. But if any employer tries to steal your money, it's illegal.

I hope this helps!

Thanks!