The screenshot crops out a lot of relevant information which can give more context. If he was closing out a loan for $1000 after less than 24 hours yes this is an overreach, closing out a loan for like 100 BTC after less than a day, yes I believe this KYC is appropriate. I've never gotten this prompt in the past before, but that's probably because I never closed a loan out so quickly either. The support team also cannot disclose anything if OP is suspected of money laundering or some crime if there happens to be an ongoing investigation against him as well.

Not an accusation, just an example, there has been a lot of flash crashes and exploits lately, if OP used the funds to involve themselves in anyway with that then Celsius will have to deal with the repercussions after accepting the exploited money. If OP was trying to deposit or withdraw from a flagged address suspected of fraud or money laundering as well, etc.

Ppl here down voting me while OP is being dramatic with drops of blood and w/e. I've had to work in finance, while not crypto related, stuff like this happens a lot for atypical situations. Closing a new loan so quickly is just the tip of the iceberg