For business
KYT office
Compliance solution to monitor risks, detect sanctions and ensure AML rules.
KYT office
Compliance solution to monitor risks, detect sanctions and ensure AML rules.
AML certification
How industry players can get up-to-date knowledge and professional certification.
AML certification
How industry players can get up-to-date knowledge and professional certification.
Graph
Comprehensive transaction analytics that helps to build graphs and trace funds.
Comprehensive transaction analytics that helps to build graphs and trace funds.
Graph
Travel rule
(soon)
For personal use
Telegram bot
Bot for checking crypto for risks, providing AML reports.
Telegram bot
Bot for checking crypto for risks, providing AML reports.
Getting money back
Services are focused on tracking
and recovering crypto assets.
and recovering crypto assets.
Getting money back
Services are focused on tracking
and recovering crypto assets.
and recovering crypto assets.
Docs and reports
All types of documents related
to cryptocurrency.
to cryptocurrency.
Docs and reports
All types of documents related
to cryptocurrency.
to cryptocurrency.
Portfolio tracker
Information about all assets and risk assessment in one place.
Portfolio tracker
Information about all assets and risk assessment in one place.
AML checks
Сhecking wallets and transactions
for illicit funds.
for illicit funds.
AML checks
Сhecking wallets and transactions
for illicit funds.
for illicit funds.
AML-сертификация
Актуальные знания в области AML/KYT от ведущих экспертов отрасли.
AML-сертификация
Актуальные знания в области AML/KYT от ведущих экспертов отрасли.
Graph
Визуализация перемещения активов
и связей между кошельками.
и связей между кошельками.
Graph
Визуализация перемещения активов
и связей между кошельками.
и связей между кошельками.
KYT Office
Мониторинг транзакций и кошельков для вашего отдела комплаенса.
KYT Office
Мониторинг транзакций и кошельков для вашего отдела комплаенса.
Для себя
Для Бизнеса
Travel rule
(Cкоро)
Телеграм-бот
Бот для проверки кошельков и транзакций с выдачей отчётов.
Телеграм-бот
Бот для проверки кошельков и транзакций с выдачей отчётов.
Возврат средств
Услуги по отслеживанию и возврату украденных криптоактивов.
Возврат средств
Услуги по отслеживанию и возврату украденных криптоактивов.
AML-проверки
Проверка кошельков и транзакций на наличие "грязной" криптовалюты.
AML-проверки
Проверка кошельков и транзакций на наличие "грязной" криптовалюты.
Портфолио трекер
Информация о всех активах и оценка рисков в одном месте.
Портфолио трекер
Информация о всех активах и оценка рисков в одном месте.
Отчёты
Все типы документов связанные
с криптовалютой.
с криптовалютой.
Отчёты
Все типы документов связанные
с криптовалютой.
с криптовалютой.
Crypto Frozen? What to Do and How to Unlock Your Account
Transaction and account freezes on exchanges have become common for crypto users amid tightening global regulations. The main reason is anti-money laundering (AML) procedures that require platforms to monitor fund flows and flag suspicious activity. Exchanges and exchangers strictly comply with AML rules to avoid fines or losing their licenses. That’s why they carefully check the source of funds and user behavior. Below, we’ll explore why accounts and transactions get blocked – and how to regain access.
Common AML Blocking Scenarios
Common AML Blocking Scenarios
- High-risk transactions. Crypto exchanges use blockchain analytics tools to assess the origin risk of funds. If your address is linked to darknet markets, hacks, or other illicit sources, your funds may be blocked.
- Suspicious user behavior. Exchanges track anomalies in user activity, such as splitting deposits into small amounts, sudden volume spikes, or instant withdrawals after a deposit—these are AML red flags.
The goal of AML isn’t to annoy users but to prevent criminal activity. Temporary freezes and data requests are standard, even if unpleasant for law-abiding users.
When an Address Is Flagged as Severe Risk
When an Address Is Flagged as Severe Risk
If your transaction or account is clearly linked to criminal activity (e.g., risk score above the threshold), a freeze is almost guaranteed.
Example: Transaction report from BitOK KYT Office
In such cases, the user loses access, and funds are frozen indefinitely. The exchange starts an internal investigation and may notify law enforcement (depending on its jurisdiction). Authorities can request all client and transaction data. If a violation is confirmed, the account is permanently banned.
Important: If the exchange is convinced your funds are illicit, recovery is nearly impossible. The compliance team may work closely with law enforcement. Major platforms like Coinbase and Binance publicly confirm their cooperation with police and regulators. In such cases, your only option may be going to court to prove innocence – but your assets remain frozen during the investigation.
Next, let’s look at how official freeze orders work.
Important: If the exchange is convinced your funds are illicit, recovery is nearly impossible. The compliance team may work closely with law enforcement. Major platforms like Coinbase and Binance publicly confirm their cooperation with police and regulators. In such cases, your only option may be going to court to prove innocence – but your assets remain frozen during the investigation.
Next, let’s look at how official freeze orders work.
Law Enforcement Freeze Orders
Law Enforcement Freeze Orders
Sometimes account freezes are triggered by official requests from police, investigators, or courts – usually as part of a criminal case. In these situations, the exchange must comply with external orders.
What does a request look like?
What does a request look like?
Typically, it’s a warrant or letter instructing the platform to freeze assets tied to a specific user. A police request alone is often enough. In most jurisdictions (U.S., EU, etc.), this comes as a court order sent to the exchange’s legal team.
How does the freeze work?
How does the freeze work?
Once received, the exchange immediately locks the assets and restricts account access. The user sees a notice citing a law enforcement request. For example, Binance froze a user account at the request of Ukrainian police and disabled withdrawals. Support told the user: "Your account is under review by Ukrainian police. Please contact them directly for further information."
In such cases, exchanges require users to cooperate directly with investigators. Support often cannot share details – only confirm that a freeze order exists. Binance, for instance, instructed the user to speak with the police directly.
In such cases, exchanges require users to cooperate directly with investigators. Support often cannot share details – only confirm that a freeze order exists. Binance, for instance, instructed the user to speak with the police directly.
Example: Binance notification to a user about account freeze following a law enforcement request. In the support email, it states that the account is "under review by Ukrainian police," and unlocking is only possible upon their instruction. In such cases, the exchange requires the user to cooperate directly with the investigation.
In such cases, exchanges require users to cooperate directly with investigators. Support often cannot share details – only confirm that a freeze order exists. Binance, for instance, instructed the user to speak with the police directly.
What are the consequences for users?
What are the consequences for users?
Best-case scenario: a long investigation and frozen funds. Worst-case: arrest and charges. The exchange is required to provide KYC documents, transaction history, IP addresses, wallet info, etc. – all used to build a case.
If a court designates crypto as physical evidence, it is officially seized, and no action can be taken with it. Upon conviction, the assets are confiscated by the state – just like any other property.
If a court designates crypto as physical evidence, it is officially seized, and no action can be taken with it. Upon conviction, the assets are confiscated by the state – just like any other property.
Can access be restored?
Can access be restored?
If you’re not involved in criminal activity – possibly. But the process is slow and complex. In one case, the user had to go to court to revoke an investigator’s request before the platform restored access. Such procedures may take months or even years, during which your funds remain frozen.
If the freeze is triggered by law enforcement, the exchange no longer makes the decisions – everything depends on the official investigation.
If the freeze is triggered by law enforcement, the exchange no longer makes the decisions – everything depends on the official investigation.
Medium Risk: Partially “Dirty” Funds
Medium Risk: Partially “Dirty” Funds
Sometimes transactions raise suspicions without a direct link to crime. For example, you might receive crypto from an unknown sender, and part of it turns out to be tainted – say, 40% from a mixer or scam project.
AML providers like Elliptic, BitOK, Chainalysis, etc., assign risk scores by category (Scam, Stolen, Mixer, Gambling, etc.) with percentage breakdowns. If total risk is high, your funds may be frozen. Many exchangers treat risk above 50% or category risk above 10% (e.g., mixers, darknet) as problematic. Exchanges don’t reveal their thresholds, but they have internal policies.
AML providers like Elliptic, BitOK, Chainalysis, etc., assign risk scores by category (Scam, Stolen, Mixer, Gambling, etc.) with percentage breakdowns. If total risk is high, your funds may be frozen. Many exchangers treat risk above 50% or category risk above 10% (e.g., mixers, darknet) as problematic. Exchanges don’t reveal their thresholds, but they have internal policies.
How does the exchange respond?
How does the exchange respond?
With medium risk, funds may be temporarily frozen while the platform requests KYC/AML documents. Unlike critical risk, the account is not always fully blocked – often only withdrawals are restricted pending review.
What might they ask for?
What might they ask for?
Requests depend on the origin of funds. Examples:
- Wallet screenshots and transaction records
- Emails and confirmations – for deposits/withdrawals from other exchanges
- Bank statements or receipts – if crypto was bought with fiat
- Invoices, contracts, messages – if crypto was payment for services or goods
- Trading history – if funds came from trading on other platforms
- Mining proof – if coins were self-mined, show pool data and earnings
AML teams may request other reasonable documents. Bitstamp, for example, has asked users about citizenship, tax residency, income, and planned trading volumes to verify financial consistency. But the core question remains: "Prove where your crypto came from."
How does verification work?
How does verification work?
Users usually have 14 days to respond. Documents are submitted via support forms, email, or encrypted archive. If the explanation is satisfactory, the account is unfrozen.
What About Small Crypto Exchanges?
What About Small Crypto Exchanges?
Small crypto exchanges operate differently from exchanges and often apply AML more flexibly.
Funds are rarely frozen long-term.
Funds are rarely frozen long-term.
Most exchanges don’t have long-term freeze mechanisms. If you send tainted crypto, they’ll likely reject the transaction and return the funds (minus a fee or penalty). For instance, Keychanger states that if the risk exceeds 65%, funds are returned minus a fine – or the transaction proceeds after verification.
Clear rules and client communication.
Clear rules and client communication.
Many exchanges publish risk policies on their websites, outlining which risks they accept and the thresholds. Example: over 50% overall risk, or more than 10% in darknet, 10% scam, 1% ransomware, 0.1% sanctions, etc.
Exchanges react faster and more leniently. In most cases, they simply return the funds minus a fee, helping users avoid lengthy freezes.
Source of Funds Verification
Source of Funds Verification
If your funds raise AML flags, the platform will ask you to prove their origin – this is standard. Below are common cases and accepted evidence.
- Trading and Investments. If your crypto came from trading or investing, provide account statements from other platforms for recent months – PDF reports from Binance, Kraken, Bybit, etc., showing deposits and trades.
- Mining. You’ll need to prove you mined the coins yourself. Useful documents: mining pool dashboard screenshots with your ID/address and payout history (some pools allow exports).
- Salary or service payments. If paid in crypto (e.g., freelance jobs in USDT), show links to clients or employers. Contracts specifying crypto payments, invoices, or completed work reports help.
- OTC and P2P deals. If you bought crypto via OTC or P2P, provide a written agreement or receipt from the seller. It’s harder to prove – but possible.
How to submit documents: Send clear, readable scans or PDFs. If documents are not in the exchange’s jurisdiction language, a translation may be required (but not always).
Final Thoughts
Final Thoughts
Anti-money laundering is now part of the crypto landscape. It has two sides: it helps protect the ecosystem from crime but creates friction for honest users.
To reduce your risk:
- Check your crypto before sending. Use blockchain analytics (e.g., BitOK bot) to assess risk. If the coins look suspicious, don’t move them until you verify the source.
- Avoid tainted funds. Don’t accept payments from shady sources without checking them first.
- Don’t mix funds if you use CEXs. Avoid CoinJoin, mixers, and similar tools – these trigger AML alerts on centralized platforms.
- Choose reliable platforms and read their policies. Understand their AML/KYC stance before using them.
AML checks are here to stay. Crypto is no longer the Wild West – it's integrating into the global financial system. But with knowledge and common sense, you can navigate safely. Use tools like BitOK bot, track your fund origins, and avoid anything that smells shady.
