He may have chose poor wording there, but do you honestly think he had the people working on his house fill out w-4 tax forms and employs them under himself?

Paying people for a service does not make you a business.

Have you ever paid someone to cut your grass or detail your car? Would you consider those people employees?

No, of course not.

He says he's paying contractors who are working on his house. You wouldn't consider that "personal use"?

Unless you are going to link to an actual definition, this is rude and worse, incorrect. The word "employ" is yours, not the OPs. Paying someone to work on your house doesn't violate personal use, much like paying a house cleaner or a repair person doesn't.

The OP talks about Bitcoin in their twitter bio, I wonder if the closure was related to that? I've had Australian banks close my account for Bitcoin transactions.

Can't they deny service without holding funds?

Exactly. It is easy not to read the agreement, general terms of use, fee schedule, terms of use for your particular account or monthly revisions of these documents and then complain. How about you respect the rules for once, OP?