I have heard about gambling sites seized people's money when they are gambling from restricted countries but have you experienced this on any exchanges?
I have experienced a temporarily suspended exchange account, but they did not ask for advanced KYC verification. I don't know exactly what the problem is, but maybe because I haven't accessed the exchange account for a long time then I accessed it again and made a deposit. The problem is that the phone number I used was different, and they tried to reconfirm. They just asked me to re-show the KYC document photo and make a video call, and everything went back to normal.