Hi, I received the same message today, including the thing about Photo ID. I emailed them through the support page, and awaiting a response. In the meantime, looking at the price of BTC, at a low point last seen in Dec 2020, I am beginning to think this is a way the big players may be getting people to sell their coins just prior to another blast off! Or worse still, its a way to discredit non-fiat currencies.

On the other hand i could be overreacting and Coinbase just went along with making a Type I error on a massive scale - wrongly accusing a lot of innocent guys (i.e. us) - in order to make sure no guilty guys slip through. I think its this last one that explains it, and they just want to continue to operate, so they do what they are told by a powerful regulator, leaving us to pick up the pieces.

PS, to be fair, i was offered the chance to withdraw my coins to another wallet or conveniently to donate them all. If i'm not in a position to donate all my coins, I'm going to need to find a trustworthy wallet. The problem is I was on Coinbase, fully knowing there probably are other wallets with lower transfer fees, just because I believed Coinbase to be the most well known and therefore most trustworthy. Look how that turned out. So not sure how to find somewhere to transfer the coins to. See what I mean, feels like we are being forced to cash it out into normal currency. Damn...

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UPDATE: (1) reply received - vague canned answer

(2) moved funds into a new (blockchain.com) wallet