Well I mean these services need to decide, either they accept funds with a criminal history or they do not. In other words. Either they close down their service or not. No way they can sit in between, because then they are seizing funds subjectively and selectively. Your Bitcoin gets seized for having a criminal history but my Bitcoin with criminal history does not because they verified 3 pictures of my face? Make it make sense.
Exactly! None of those services disclose how they decide which funds are good or evil, so it's completely arbitrary. It's also a very recent thing that suddenly happens a lot on many different services, which (again) makes me think there's some strong marketing behind it. And that's not in the interest of Bitcoin users.