Yes. "Freeze funds and do not communicate to customer" is basically AML response 101.
Even if you know you've done nothing wrong (but of course audit your transaction history to make sure), you'll want to have an appropriate lawyer ready.
How are anti-money-laundering laws that require that treatment constitutional? Didn't https://en.wikipedia.org/wiki/Coffin_v._United_States establish innocent-until-proven-guilty? Isn't this at least as bad as civil forfeiture?
Note that this is a corporation not releasing funds, not the government so the constitution doesn’t apply. In this case it would be the terms of service which likely calls out this as a possibility.
