Any chance their "verification" is just simply to validate active accounts? If the account doesnt get verified after a period of time, they re-claim/re-distribute any funds to cover losses?
I think there's a good chance this is why verification would be enforced. But that doesn't address the fundamental problem: who wants to send their ID to this exchange now and be linked to funds that the US government considers to be illicit proceeds? KYC in this situation raises the odds of a honeypot by a good percentage, too.
I have so much funds there, its my 15 years of life. My name is gladiator. I will do whatever it takes to get at least some of my funds. I do not care if its a honeypot which I doubt anyway, FBI would have offered 100% and wrote in English too, to get all the USA users to verify themselves.