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Funds recovery from a cryptocurrency exchange
In the world of cryptocurrencies, where millions of transactions occur daily, users often encounter difficulties when attempting to withdraw funds from a crypto exchange. These issues may arise due to account freezes, asset blockages, or a platform’s refusal to fulfill its obligations. In such cases, the legal experts at Law&Trust, with years of experience in resolving such disputes, are ready to assist.
Why are funds frozen on crypto Exchanges?
Freezing of funds is a common issue that can affect both beginners and seasoned traders. The reasons for such blocks vary. Let’s examine the most frequent ones:
- Suspicious Activity and AML/KYC Policy Violations
Many exchanges-such as Binance, Bybit, and Kraken-have strict Know Your Customer (KYC) procedures that must be completed before users gain full access to platform features. If a user fails to provide verifying documents, uses someone else’s data, or attempts to create multiple accounts, it’s almost guaranteed that the funds will be frozen. - Violation of AML (Anti-Money Laundering) Policies
Exchanges block transactions if they suspect money laundering or the financing of illegal activities. This includes large deposits without confirmed sources of funds, or suspicious trading patterns. Funds may also be frozen if transfers are made to so-called sanctioned addresses. - Complaints and Disputes in P2P Transactions
P2P platforms (such as Binance P2P, Huobi, LocalBitcoins) frequently freeze assets due to chargebacks-cases in which the buyer provides bank payment proof after receiving the crypto. In these situations, the exchange holds the cryptocurrency in an escrow account until the dispute is resolved. - Court Orders and Regulatory Requests
Asset blocking may result from requests by law enforcement agencies-for example, if the exchange receives an order from the FBI or Europol-or from court rulings or emerging lawsuits. - Internal Exchange Policies
If the exchange detects unusual activity (e.g., logging in from a new IP address, mass fund transfers), it may temporarily freeze funds to protect the user. Excessively frequent withdrawals can also trigger suspicion, possibly resulting in account suspension. - Issues with Payment Systems
If a user deposits funds via bank transfer, card, or PayPal and then attempts to withdraw cryptocurrency, the exchange may freeze the assets until the origin of funds is verified or the payout’s compliance with the payment provider’s policies is confirmed.
Why is it important to contact Law&Trust?
Attempts to independently recover funds from an exchange are often unsuccessful. Exchanges may delay processing requests, ignore user inquiries, or refer to internal policies that are difficult to challenge without professional assistance. The Law&Trust team is ready to manage the entire process for you.
How Can Our Team Help You?
Analyze your situation and determine the legal grounds for funds recovery.
Prepare and send official requests.
Conduct negotiations with the platform’s administration.
Draft and file necessary legal claims. And will represent you before the courts, if required.
If you are facing problems with funds withdrawal from a cryptocurrency exchange or your crypto assets have been frozen, don’t waste time. Contact Law&Trust - we are ready to help you recover your funds through legal means.
