There is no need to panic if you did nothing wrong. I think the KYC check is their normal procedure given that it's even talked about in their terms of service. Just do as instructed, pass the KYC verification and I believe they will let you withdraw the money

There's a case that I closely followed where a user's account was unblocked, and he got back his money even when he had made a deposit from a banned Country. Of course, they had to be lenient because the User didn't want to undergo KYC verification and the amount wasn't that much.