So if you are from a forbidden Country, Razed.com then discovers that and the forfeits are your winning you made in the casino while you were located in the forbidden country and then blocks your account. Why are you complaining, then?
Shouldn't this be obvious that the casino is right, unless if I missed something?
You are missing the fact that they are free rolling him by taking his money in the first place. They clearly saw that he was from Spain since he didn't hide his IP. Yet they happily accepted his deposits knowing if he wins they don't have to pay and if he loses it is what it is.
If you play at stake for example and you are from a banned region (according to their TOS) you instantly get a message when opening the site that you can't use the site from there, that's how it's supposed to be.
The way they handle it opens the door for this kind of free roll scenario, which really is scammy. Of course it's OP's fault since he didn't read the rules, that's no question. But I am sure razed knows exactly what they are doing there, this clearly is intentional.