{"id":63345,"date":"2022-06-23T10:51:09","date_gmt":"2022-06-23T07:51:09","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=63345"},"modified":"2025-09-05T23:30:19","modified_gmt":"2025-09-05T20:30:19","slug":"what-to-do-if-a-crypto-exchange-blocks-a-transaction-or-an-account-says-lawyer","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/what-to-do-if-a-crypto-exchange-blocks-a-transaction-or-an-account-says-lawyer\/","title":{"rendered":"What to do if a crypto exchange blocks a transaction or an account, says lawyer"},"content":{"rendered":"<p>With the growing popularity of cryptocurrencies, regulators are <a href=\"https:\/\/forklog.com\/en\/news\/sec-pledges-tougher-oversight-of-bitcoin-exchanges\">paying closer<\/a> attention to bitcoin exchanges, and the latter are more thoroughly monitoring transfers. Against this backdrop, instances of blocking or freezing transactions and accounts by platforms have become more frequent.<\/p>\n<p>The attorney from Juscutum law firm, Andrey Martsinyak, told ForkLog why crypto platforms block users&#8217; funds and what to do if it happens to you.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Why did the exchange freeze or block the account or a transaction?<\/strong><\/h2>\n<p>The most common reason for asset blocks is \u201csuspicious\u201d transactions. These may include:<\/p>\n<ul class=\"wp-block-list\">\n<li>transactions with cryptocurrencies acquired illegally. For example, as a result of fraud or illicit activity (so-called \u201cdirty\u201d crypto assets);<\/li>\n<li>transactions related to transferring to a crypto wallet a sum in cryptocurrency that is too large for a particular user.<\/li>\n<\/ul>\n<p>There have been cases where the exchange blocked a client\u2019s access to funds due to a court order from a foreign jurisdiction freezing a crypto account (freezing order) while the case is being considered, noted Martsinyak.<\/p>\n<h2 class=\"wp-block-heading\"><strong>What to do if your account is blocked?<\/strong><\/h2>\n<p><strong>Firstly,<\/strong> you should promptly initiate communication with the support team. The initiative may come from the exchange or from the client themselves.<\/p>\n<p>Sometimes after a block, the trading platform immediately sends a letter with the relevant demand. This may be either a request to explain the purposes of a particular transaction, or an instruction to withdraw your crypto assets in connection with account closure without explaining the reasons.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cAt this stage, it is critically important to respond as quickly as possible. Even if you have nothing to answer &#8216;in substance&#8217;, you should nonetheless write a letter,\u201d emphasized Martsinyak.<\/p>\n<\/blockquote>\n<p>The content of the reply could be as follows:<\/p>\n<p><em>\u201cYour letter has been received. Please allow time to collect the information you request and\/or engage a lawyer to provide answers to your questions.\u201d<\/em><\/p>\n<p>A delay on the part of the client will only fuel the exchange\u2019s suspicions, which may complicate the unlocking procedure.<\/p>\n<p><strong>Secondly,<\/strong> you should try to determine the reason for the freezing of the transaction or the account block.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWhy \u2018to try\u2019? Because in some cases the exchange is not entitled to disclose the reasons for blocking the account\/transaction,\u201d the lawyer noted.<\/p>\n<\/blockquote>\n<p>To a large extent, this is connected with investigations conducted by law enforcement authorities regarding crypto assets held on the client\u2019s account at the exchange.<\/p>\n<p>Here\u2019s how it works: the platform receives a request from law enforcement to freeze a particular transaction\/account for a certain period. The reasons for the block are not disclosed in such cases, since the account holder may be suspected of committing the investigated offence.<\/p>\n<p>If the exchange does explain the reasons for the block, it will become clear which documents should be provided to lift the restrictions.<\/p>\n<p><strong>Thirdly,<\/strong> you should be prepared to provide proof of funds. They must be proportional to the blocked amounts. Moreover, the documents should clearly describe the user\u2019s activity.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cIf you know that a large amount of funds in cryptocurrency are going to be received, it is better to prepare documents in advance proving the legality of the operation,\u201d noted Martsinyak.<\/p>\n<\/blockquote>\n<p>Examples of such documents include, for instance, a contract for the sale of property, funds from which you are transferring into cryptocurrencies, a bank statement, a certificate of income, and the like.<\/p>\n<p>During the communication with the exchange, it is important not to harm yourself, the lawyer emphasized:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cFor example, saying that you are using an account created in your grandmother\u2019s name and verified in her name is a bad idea. Practically all exchanges have a rule that crypto assets must belong directly to the person who completed the KYC procedure, i.e., the account holder on the exchange.\u201d<\/p>\n<\/blockquote>\n<p>Preliminary collection of documents and their prompt provision to the platform upon request will lead to a faster unfreezing of the account and\/or transaction.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cMaximum transparency of operations and preparation can safeguard your crypto assets and save your nerves,\u201d concluded Martsinyak.<\/p>\n<\/blockquote>\n<p>Follow ForkLog\u2019s Bitcoin news on our <a href=\"\/\/telegram.me\/forklog\" target=\"\u201c_blank\u201d\" rel=\"\u201cnofollow\u201d noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The lawyer from Juscutum law firm, Andrey Martsinyak, explained to ForkLog why crypto exchanges block users\u2019 funds and what to do if this happens to you.<\/p>\n","protected":false},"author":1,"featured_media":63346,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1412,1166,1375],"class_list":["post-63345","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bans-and-restrictions","tag-centralized-exchanges-cex","tag-lawyers"],"aioseo_notices":[],"amp_enabled":true,"views":"55","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/63345","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=63345"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/63345\/revisions"}],"predecessor-version":[{"id":63347,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/63345\/revisions\/63347"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/63346"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=63345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=63345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=63345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}