Sell all cryptocurrencies in BlockFi (this is so now on paper you are not holding cryptocurrencies, you will have to pay capital gains tax - better now than in 5 years...)
Create new bank account, e.g. Chase, and move the fiat to this account (this account will be used for p2p transfers, so there's some risk it may get closed by the bank, hence a new account)
Buy Trezor or similar hardware wallet and set it up (if you get Trezor, then definitely set it up with passphrase)
Now we have 2 different ways depending on whether (A) you have friends that are willing to sell you non-KYC coins (e.g. a friend miner) or (B) you don't have friends.
Withdraw the money from your new account as a cash (e.g. from ATM or for larger amounts you may need to go to that bank)
Buy BTC from your friend for the cash.
Store the BTC in hardware wallet (or similar). At this point you may consider doing rounds of coinjoins (or clean through Monero), but that depends on whether you are planning to spend the bitcoin anytime soon, or whether you are waiting for easier bitcoin cleaning tech to be developed.
Alternative here is if you or your friends can create p2p exchange following something like #7424, then you can trade even online.
Install Bisq. It looks hard at first (and the UX sucks), but if you watch the tutorial videos, then it becomes really easy.
First you need to fund Bisq with no-KYC BTC. So either use if you have some, or take your other existing BTC through couple of rounds of Samourai Whirlpool. Only send specific cleaned-up UTXO to Bisq
you should fund each order on Bisq separately to make sure you are not connecting those orders together.
Create new offer on Bisq for the amount you want and fund it with your mixed UTXO. Choose a method that works for you. Cash in mail works, or you can use Zelle from your new bank account (but think about the risks).
Repeat creating and filling offers based on your bank limits...
Withdraw from Bisq each UTXO separately to your cold storage.
A) Have BTC friends
B) Don't have BTC friends