Exchange Froze Your Crypto? What to Do, Step by Step

Why exchanges hold deposits

Regulated exchanges must prevent money laundering. When a deposit traces back to risky sources — or when required sender information is missing — they can pause it while they review. OKX’s help centre says a deposit can be locked for Travel Rule checks in regulated regions, or while required assessments are unfinished, until the customer provides the sender’s details.^[1] Kraken says it may ask for Source of Wealth and Source of Funds documents such as payslips, bank statements or exchange statements.^[2]

What to do

1. Use official channels only. Open a ticket in the exchange app or website. Do not answer DMs from “support agents” on Telegram or social media.
2. Gather your records. Where did the coins come from? A withdrawal from another exchange (statement), a P2P trade (order ID, chat, bank transfer proof), mining or salary (payouts, contract).
3. Check the sender’s address yourself. Run it through an AML checker so you know what the exchange is likely seeing.
4. Answer precisely. Explain the transaction in plain words, attach documents and keep copies. Do not invent sources.
5. Don’t move other funds around. Shuffling coins between wallets to look “clean” can make things worse.
6. If the amount is large or sanctions are involved, talk to a lawyer in your country.

When the issuer, not the exchange, froze it

Stablecoin issuers can freeze tokens at an address independently of any exchange. Tether says it can restrict USDT in wallets linked to illicit activity,^[3] and Circle’s USDC terms allow it to block addresses.^[4] In that case the exchange cannot release the tokens; the issuer’s process applies — see why USDT gets frozen and what you can do.

Avoid “recovery” services

People with frozen or lost funds are targeted by fake recovery agents who promise to unlock funds for an upfront fee. Legitimate help comes from the exchange, the issuer, law enforcement or a lawyer — never from a stranger who contacted you first.