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?
I have never experienced it and there may not be much to say but I often use binance as a transaction usage.
If you are using a vpn then you should avoid switching from one country to another in a short time because it can raise suspicion so the exchange will ask for further verification to make sure it is indeed yours.
But for confiscation of money I have never experienced it and hope it will never happen and this is something we should avoid.
For local exchanges we are asked to do kyc by using identity and photos but I have never deposited large amounts of money into the exchange.