Once again, Do not write consecutive replies. It's not allowed. Edit your old post if you want to add something. See the quoted rules below.
32. Posting multiple posts in a row (excluding bumps and reserved posts by the thread starter) is not allowed.
Their terms and conditions are not relevant because they are not licensed in Australia to accept bets. End of story. You're focusing far too much on the terms and conditions. They never even verified my account which is another thing that is going to go against them.
Why do you think that Their terms and conditions are not relevant here? Their TOS clearly said they do not accept players from Australia. So, if they block your account and confiscate the balance due to this reason, you don't have anything to do. If you do, the result won't be on your side. It's just my assumption. I didn't get what did you mean by the End of the story.
They did not verify your account because your real IP was exposed to them and they did not feel that they need to ask you for KYC. Only you and Stake know what happened. I cannot tell you why they did not ask for a KYC and why they blocked your account. Based on your statement, it doesn't look good enough for you.
If they had adequate verification on ALL stake account this wouldn't occur. Simple. But they don't because they are making a ton of money from clients they otherwise wouldn't have betting from unlicensed jurisdictions. Don't have to be a rocket scientist.