I don't think so, if they lost due to KYC, why are the others with the same KYC flourishing in the business?
Which services which demand KYC are flourishing? In terms of centralized exchanges we've seen dozens collapse with insolvency, bankruptcy, or outright scams over the last few months, and those which haven't collapsed laying off huge chunks of their employees. And in terms of fake peer-to-peer exchanges which demand KYC, we've seen LBC shutdown and Paxful volume falling.
If you want to actually trade peer-to-peer, then you can use an exchange like Bisq which gives you complete privacy and complete security over your coins, does not require any KYC, and does not require you to deposit any money to a centralized wallet. I see no reason to use something like LBCs which provides you with zero privacy, zero security, frozen accounts, seized coins, and leaked/shared/sold data.