The action of selling a users crypto at any point in time they decide wasn't in their terms, They are fraudsters acting illegally.
I have to agree with you here, i have never used Uphold and i really hope people who had plans of using them see this thread and change their mind. If their terms of service says one can withdraw crypto into their self custodial wallet, then they have to process crypto withdrawals and not block the account for months.
Then selling the crypto arbitrarily and refunding the customer is borderline insane, how did they come to the conclusion that that is the resolution to customer wants, i recommend people stay away.