Basically the same happened to me.
I deposited 5k USD worth of crypto, then price tanked and due to low liquidity I decided to withdraw again.

When after 12 hours my withdrawal still hadn't gone through I reached out to their customer support.

They told me something about technical issues and escalating the issue. I then later on received an email telling me to fill out an ECDD form with tons of sensitive information like employer details, annual income etc.
On top they gave me a deadline of three days to comply.

It's ridiculous.

And the joke is, I even have an official position with the project the funds got frozen from. There clearly is no basis for an ECDD.