Did they ask for the KYC when you were depositing funds ? No right most of the times this happens and problem is that you used a VPN ofcourse which will end up against their rules and regulations causing your winnings and everything to go, they won't be allowing you to withdraw anymore as well since this would be against their policies. What you can do is ask some friend of yours from other country where the crypto is legal to do that and this can actually work only if they don't suspect it but then again be would be making the bets on your behalf much like a third party which is again scary to trust regarding so much money.
They have a very flexible rule which is always in their favor.
Actually, they would not care if you are losing, but if they notice that you are making a huge money and that will trigger them to use their TOS to prevent you from winning, it's a kind of cheating on their part but it's not against the law because the gambler is the one who broke rules in the first place.
While there are casinos that do that we need to be honest about this, the one at fault is the one that started this thread, they state they read the terms of service and they knew from the beginning they were not allowed to play at that casino due to their location and then they decided to violate those rules anyway several times, so eventually when the casino found out then they were within their rights to put their account on hold and ask him for his personal data.