I know some instant exchanges like Changelly or ChangeNow can do that but I am not asking about instant exchanges. I am asking about exchanges like Binance, Bybit and others.
I remember days that I forgot to off my VPN but using it to open Binance, it happened repeatedly and Binance was warning me but after several warnings, they told me to do the third verification which was proof of address or something. But it was not by force because i can withdraw my coins and they gave me deadline. My money was not seized.
Exactly what happened to me on Binance happened to me on MEXC but it was not several times and they also change my account to withdraw only. They did not also seized my coins.
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?
So far I havent been able to experience on what you had experienced on which I do only made out that one verification or that level 1. I dont use up any VPN but since you had that mentioned that you had accidentally switched on your VPN then that would be reflecting out that sudden IP change which its normal for them to give out some warning about it on which it would be that normal. Its good that they havent locked you up directly or asking for some verification directly but rather they do give out some warning so that you would be able to avoid it on next time. In my case i havent been able to experience it out and i dont have any plans on trying to access a particular site via VPN on which if it turned out that a particular platform or service isnt available for me then i do just that simply skip and wont be trying out to proceed since there are tons of options there on which you can be able to make use if ever you are that hesitant on having that kind of verification.