Elderly Father started trading crypto - Worried about possible scam

If I have posted in the wrong sub PLEASE direct me to the right one. I'm terrified and desperate for answers from actual people.

My elderly Father has secretly started using 'Safepal' to invest in a "grayscale fund." He took out several large loans without informing us, his adult children, all under the advice of a woman from WhatsApp.

He said he earned a ton of money, pulled some out of the fund and now it's being checked for money laundering etc. He said if it's "approved" he can move it to Gemini and it becomes real money.

I have no idea how this works and attempts to learn or get answers to my questions online have been fruitless. It appears his apps are legit at the very least, yet I'm concerned about this supposed approval process.

Is it normal to make money from a grayscale fund through SafePal? Does it actually have to be checked before it can be sent to gemini and wired? Is over a week an acceptable time frame for this to happen? Does this seem like a potential scam or is this fairly standard?

Please, if anyone can give me.some guidance in lamens terms I would appreciate it tremendously.

Edit: THANK YOU for all of the answers and advice. We assumed as much but with little direct knowledge could not say for sure how the process should work. Ill advise him to report the scam and, unfortunately, he will likely have to file bankruptcy to recover from this.

Absolutely wretched these people who prey upon the elderly who are lonely and vulnerable. Keep an eye on your loved ones everybody!