You made a business contract with a company. In that contract, they stipulate that under certain circumstances they will hold your money. What is a problem is the company is completely full of shit in how they handle these situations. They are "protecting themselves" from your account potentially being some sort of fraud. This is all automated with zero to little human involvement which creates potential for lots of false positives. During these cases, the company is 100% at fault for being cheap ass bastards that show zero sympathy towards users.
This is not something for local police to be involved. The disconnect seems to be emotional vs logical.