Sure, but that doesn't mean they have to implement the KYC at the same time they announce it.

No court order says "Implement KYC TODAY or you will be shut down". They could quite easily give a grace period of a couple of weeks. They could suspend accounts from deposits, buys, sells, trades, etc., until they have completed KYC, but still allow them to withdraw whatever they have already deposited. They could freeze their entire exchange for 2 weeks whilst still allowing withdrawals, and then implement the KYC requirements. They also must have known this was coming. Their first contact from the government definitely wasn't "KYC or shutdown". There would have been correspondence leading up to this, and they would have anticipated this was going to happen. To give their customers absolutely zero warning and just say "your information or your coins" is pretty much theft.

As always, don't store your coins on an exchange.