Today I've had exactly the same experience with Bittrex - tried to withdraw some coins when they suddenly wanted to verify my account. After sending them photos of my passport and myself it said "doesn't match the name on my document"...
Looks like Bittrex is in serious trouble...
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Same exact message I got. Ridiculous.
I was thinking maybe the US gov. is maybe trying a new strategy to cripple the crypto market by making pressure to the US-based exchanges. For Bittrex this is nothing but a damage to their business and reputation. The funny thing is I was about to transfer my funds to my new hardware wallet to avoid exactly something like this...