What apparently happened is that the user took a Blockfi loan against his BTC holdings. When the bank subsequently learned the bitcoins were tainted from a BTC

What apparently happened is that the user took a Blockfi loan against his BTC holdings. When the bank subsequently learned the bitcoins were tainted from a BTC tumbler, they recalled the loan. He took the loan at when BTC was $65k. They recalled the loan at $37k.