Given Bitfinex's association with other shady ventures, and its previous hacks, I was never a fan.

However, one of the things that I actually thought was good about them was their customer support, for the brief amount of time that I did use them. But seems like things have changed quite a bit, especially in your case.

This is a common strategy for exchanges nowadays, to cite the so called "KYC concerns" as a way of essentially holding onto your coins for longer than what you would have originally planned. Things like this happen on subpar exchanges like HitBTC extremely often. And exchanges who use these tactics are often suspected of insolvency, given that their objective is to delay withdrawals.

I'm not sure that this is Bitfinex's reason for delaying here, but it clearly does not render them in a trustworthy light whatsoever. Should be a warning to all.