Even if I granted you this, which is sort of silly since this is a subreddit post and not an AML compliance review, it sounds like everything was fine. Sounds like they are releasing his money after hours on the phone with customer service.

I once deposited 100 dollars into a sports book because I saw odds online and I wanted to make a bet. When I got to the sportsbook the odds had changed. I withdrew my 100 dollars and they put it on a hold for similiar issue - to prevent money laundering. I told them what happened, sent my ID, then eventually released my funds.

Did I launder money there? No, clearly not, though the burden of proof to the casino may have fallen on me I did not in fact launder money.

And very likely OP didn't launder money either. He deposited money, found out he couldn't trade options, withdrew the money. This isn't money laundering and you have no evidence it is. You just suspect it is.