Only a gigantic troll or a complete idiot would say that a company complying with anti-money-laundering regulations "raises a red flag." Sure it's inconvenient, but you're placing the blame at the wrong doorstep. This is one of the problems that Bitcoin solves very well, which makes every use of an exchange to obtain USD or some other fiat currency terribly ironic.
Dude, what the hell are you doing here as a moderator? They've got job openings at the NSA.
Oh wait you're already working for them, PR department. My bad.
I wonder if Mt. Gox is running short of cash when something like this happens.
Just like the police always foils a new "terrorist plot" when it's time for elections.
The exchanges have repeatedly had problems with having their accounts containing user funds closed or frozen.
Any exchanges other than Gox?
I've also had a very nasty frozen account issue with MtGox as they dealt with this whole issue very unprofessionally. You don't impose new defacto Terms of Service on your clients unilaterally before letting anyone realize what's going on much less agree to them. I got almost sick because of worrying and lack of sleep (I had a large $um of money with them) and I'm running with my cash and coins forever as soon as I get a chance.
As a sad general observation, I think the Bitcoin economy is quickly transforming into a traditional banking one, and that within a few months it'll be hard to buy or sell coins without handling personal information. Even MtGox which is technically a Japanese company clearly caved in to major banks and/or US government bullying. This could ultimately lead to the project's failure just like e-gold and others failed when the American government cracked on them. A new wave of price dropping has already started.