Signal can reveal two pieces of information as far as I know:

1. the last time you were online

2. your phone number.

The phone number is my primary concern because governments can track your location by triangulating it through mobile carriers.

https://signal.org/legal/#privacy-policy

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But can they read your data/messages? It's encrypted or?

Phone number is also my biggest concern. That’s why I prefer nostr:npub1exv22uulqnmlluszc4yk92jhs2e5ajcs6mu3t00a6avzjcalj9csm7d828

What if you use a VoIP number?

YOU SHOULD USE A VOIP OR BURNER NUMBER BUT MOST DONT.

IN SIGNALS DEFENSE THEY DO NOT ACTIVELY BLOCK VOIP NUMBERS LIKE MANY OTHER SERVICES.

You mean the last time you were not online?