You log in to your account. You're about to transfer funds, buy an asset, or complete a trade. But instead of the usual interface, you see a message: “Account temporarily suspended. Please contact support.”
This marks the start of the most frustrating part of dealing with a crypto exchange — a process where the client has almost no leverage, and the platform offers vague or purely formal explanations. Sometimes they say nothing at all. Other times, it’s a generic line: “For security reasons,” “Suspicious activity under AML policy,” or simply, “We reserve the right to freeze accounts in accordance with our Terms of Use.” For the user, it feels like a verdict. Access to funds is gone. And figuring out what to do next can be even harder.
What’s really going on?
Account freezes on crypto exchanges don’t only happen in cases of fraud or criminal activity. Very often, it’s the result of automated monitoring systems flagging something as risky — a transaction pattern that doesn’t match the norm, or a link to high-risk addresses. As a result, even completely legitimate users can face a block.
Case 1: A freelancer received USDT as payment for remote work. The process was contactless — a chat-based order and wallet-to-wallet payment. The issue arose after the funds arrived: the exchange’s system flagged the sender as connected to wallets that once interacted with mixers or darknet services. The freelancer’s account was frozen, and he was asked to prove the origin of the funds — something he couldn’t actually do.
Case 2: A trader used the exchange’s API across multiple accounts, accessed via different IPs and VPNs. The platform interpreted this as multi-accounting or an attempt to bypass restrictions and froze all linked accounts, blocking withdrawals pending investigation.
Case 3: A legal entity was running OTC trades without pre-screening customer addresses through KYT services. One client sent crypto that had previously been linked to a phishing scheme. The exchange reacted harshly: full account suspension, a request for company documents, origin of funds, and a full transaction log for the past months.
Case 4: A user kept funds on a platform that turned out to be a scam — no license, shady jurisdiction, fake support. After a “technical upgrade,” the account became inaccessible. Attempts to identify the owners or contact regulators/police led nowhere. In cases like this, chances of recovering the funds are close to zero.
Why it’s hard to unblock an account on your own
Crypto exchanges usually communicate “on the level of legal entities” — in terms of language, procedures, and documentation. It’s not enough to say: “This is my wallet, I did nothing wrong.” They typically expect:
- Proof of fund origin — bank statements, transaction history, invoices, contracts
- A formal explanation in English — with clear and legally sound argumentation
- Understanding of the rules — AML procedures, KYT triggers, response timelines
- Willingness to engage in lengthy communication — often lasting weeks or even months
This is often beyond the capacity of the average user — especially when under stress, lacking experience, or facing language and legal barriers.
How Manimama can help
Our team has hands-on experience dealing with exchange security, compliance, and legal departments. We don’t make empty promises — we study the case, analyze all the facts, and build a strategy that takes into account the exchange’s specifics, your residency, the amount of funds involved, and your transaction history.
We offer:
- Comprehensive risk analysis and address screening (via AML tools)
- Preparation of a professionally written request in English
- Communication with the exchange — on your behalf or jointly
- Review of your submitted documents to avoid common mistakes
- Support until the case is resolved or the funds are released
No false promises — only structured action
At Manimama, we don’t guarantee results until we’ve reviewed the case. But if a solution exists — we’ll find it.
We only take on cases where we believe we can be of real help. Our process is structured: we establish a clear line of communication with the exchange, prepare all the required documentation, and stay with the client until the matter is resolved.
If your funds have been frozen and the exchange support offers no clear answers — reach out to us. We’ll assess your case, estimate the chances, and offer a practical action plan.
Manimama Law Firm provides a gateway for the companies operating as the virtual asset wallet and exchange providers allowing to enter to the markets legally. We are ready to offer an appropriate support in obtaining a license with lower founding and operating costs. We offer KYC/AML launch, support in risk assessment, legal services, legal opinions, advice on general data protection provisions, contracts and all necessary legal and business tools to start business of virtual asset service provider.
The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.
