Funnily enough I've had some issues with Binance recently, too. I've been using their services for many years, a binance card user as well with decent trading volume. A couple of weeks ago they started spamming me with "Source of Wealth documents needed" - I provided everything I had and after some time they backed off but then I got a warning because "You have sent and received funds to/from gambling services which is prohibited as per our terms". I searched through their ToS and they make no mention of gambling services, anywhere. When I pointed this out the reply I got was "This is our terms, do not receive funds from any gambling services or you will be banned".
Alternatives are desperately needed, indeed. I guess they just got too big.
There is nothing directly written about gambling in their Terms of Use, they only state this:
ALL USERS OF BINANCE SERVICES ACKNOWLEDGE AND DECLARE THAT THEIR FUNDS COME FROM LEGITIMATE SOURCES AND DO NOT ORIGINATE FROM ILLEGAL ACTIVITIES;
I don't get it, is casino an illegitimate source or is gambling an illegal activity? No, so, in your case, they definitely abused their power, which is a crime.
By the way, their employees are helping Chinese users to bypass KYC verification. This is an abuse of TOS, this is an abuse of power. They own CoinMarketCap and manipulate trading volume, which again, is an abuse of power. I don't have proofs but I believe they manipulate Futures Trading and generate more money by liquidating assets. Yes, because there have been cases when futures price hugely differs from marketcap price and sometimes price in futures drops or rises hugely for a while to liquidate assets, this is the fact!
Binance is shady company! I'm really looking for an alternative. Still, there is so much demand and none businessmen/investors try to fulfill this demand.