What does any KYC exchange do with frozen funds? We've mostly gotten to the point where they freeze funds they think are illegitimate, but what's the procedure after that? Do they look for the original owner they think the coins belong to? do they give those coins to the authorities, or do they keep them for themselves?
I'm okay with KYC on some cases, when it's a trusted company with publicly known owners. I'm also okay with (some) anonymous services with anonymous owners. The problems start when anonymous owners demand KYC data, and when they freeze funds, I can only guess what's going to happen to it.
When it happened to me, I had to let the funds go.
And blame myself because I didn’t rely on a trusted non KYC exchange.
I strongly advice against resorting regularly to KYC exchange.