Spin too fast and you have a "naked" singularity
Basically, yeah, that's exactly what's limiting the rotational speed of a black hole.
Rotating black holes, also known as Kerr black holes, have a spin parameter value that is between either 0 and 1. A black hole with a spin parameter value "0" is a Schwarzschild black hole, i.e. a "static" black hole, that does not spin$^1$.
A spin parameter value of "1" is the absolute limit of rotating black hole. That is because $SPV$ "1" is equal to $1c$, or about 100% the speed of light, which is impossible to attain by nearly every simple object in the universe, forget black holes.
For example, the Milky Way's supermassive black hole, Sagittarius A* has a SPV of 0.1, which means it's spinning at about 10% the speed of light. Pretty impressive, but dull compared to some other black holes.
M87 has a SPV of about 0.90 ± 0.05, which means it's rotating at about 90% of the speed of light, extremely rapid, but just a short way from the maximum speed limit.
However, here is where really weird things start to happen.
Normally, when a black hole rotates, it drags the spacetime along with it, forming a donut-like region of warped-spacetime, known as the ergosphere:
However, if you make the black hole spin real fast, then the ergosphere starts flattening out. This effect causes the event horizon of the black hole to shrink. If it speeds up, it shrinks even more.
Eventually, at SPV 1 and above, the event horizon converges at the singularity.
There you have it, a singularity in the nude (No NSFW reference, what are you talking about?). This naked singularity is highly erratic, as it can randomly spew out completely random (yes I am repeating that TWICE) pieces of information. To give you an idea of how erratic a naked singularity is, here is this graph/comic/idk? thingy that illustrates it.
But, as explained, that cannot happen. You need a black hole to spin at the maximum speed limit, which is impossible, as it requires it to rotate at the speed of light or even higher, which cannot occur in nature.
So there you have it.
Moral: If you're a black hole, don't spin wayyy fast, or you might become "naked".
Some videos which can provide more information on this topic, if you are interested: 1 and 2.
1. It can also be a static Reissner-Nordstrom black hole, one that is charged. Charged black holes can also exist, one which possess either a positive or negative charge. Also, charged black holes can rotate as well.