No, they shouldn't confiscate your winnings as your account was created before the casino added your country in the restricted countries list. And they should block your account after refunding all your account balance. Winz.io has made another post today in your complaint at Casino Guru. They are going to refund your winnings as well. I hope you will update us here if they send your winnings to your wallet.
Considering the unique circumstances surrounding this case, we have decided to make an exception. We will refund the deducted amount of winnings to the player in full. Our aim is to demonstrate our commitment to fairness and customer satisfaction, even in cases where there might be uncertainties.
This is what they should have done in the first place instead of pulling rope, but finally common sense prevailed. It's good OP persisted in the CG thread because the ton they used to respond to him. It was as through they were blaming him for their mistake and didn't want to even make any additional refund
I wonder what happened to the other similar complaints because the cases seem to have not a conclusion before they were closed.