I don't do "arbitrage betting" but similar casinos using the same sportsbook provider (betby) are also throwing accusations and banning/reducing my stake me for "value betting" which is a ridiculous accusation, basically implying if I beat their sportsbook I'm breaking ToS.
All the sportsbook with Betby odds provider is identical. You should have avoided Chips.gg if your account was limited on a different sportsbook where the odds provider was same. It is pretty clear that the decision has come from the odds provider to block your account. And Chips.gg team have decided to withhold all your funds, including the deposit (according to terms 13.1 from 'PM/Chat logs'). They should have allowed you to withdraw your deposited funds.