Holding users funds hostage and demanding they either sacrifice their coins or sacrifice their information is incredibly immoral.
I think it's mostly the case that they don't have any choice but to require KYC, just like ShapeShift was forced to. Pretty much the government was like: "
require KYC or we shut down your business." I honestly would understand their stance if only they've given at least a weeks notice to their users about them going to require KYC. In this case with Crypto-Bridge, it looks like they're simply just very unprofessional on how they announced the KYC requirement.