Thanks so much for the replies. I've been following this thread and wanted to post an update:
Paxful told me I must use Jumio to verify my identity because Paxful lacks the capacity to verify user identity. I don't intend to hide my identify from Paxful, but I also don't want Jumio to keep my biometric data and potentially ask for more documents endlessly.
I've spoken to a friend's lawyer who is willing to help me verify my identify for Paxful and sue Paxful if Paxful insists I use Jumio to verify my identity. For now I'll hold off on suing/traveling due to covid. If anyone has anything to add, please feel free to chip in. Thanks.
Most websites or centralized exchanges I have come across use automated services like Jumio to process KYC data. Sorry about your situation but looks like you have only 2 choices here.
Either do the KYC or accept to lose the $1,000. They are always going to refer to their
Privacy policy and terms of service whenever you try to make an argument out of it.
Never keep coins in a website for long periods of time as terms and conditions can change overnight and there's nothing much you can do about it once you get caught up