Head of International Corporate Law and Fintech Practice
Expert in fintech, crypto, and international corporate law with over 20 years of experience. Specializes in crypto licensing (VASP/CASP), iGaming business support, and international structuring, asset protection, and OSINT analytics for risk assessment and due diligence.
Case: Unblocking 0.7 BTC from a crypto exchanger
Client request:
A client contacted us with a problem of blocking funds during a cryptocurrency transaction. He received 0.7 BTC (approximately equivalent to $65,000 at the current exchange rate) to his crypto wallet and decided to convert this amount to the USDT stablecoin for further use.
To make the conversion, the client chose a specialized exchanger that was supposed to ensure a fast and secure transaction.
However, a problem arose — immediately after sending bitcoins to the exchanger’s address, the client received a notification that the transaction was frozen.
The exchanger referred to mandatory verification within the framework of AML/CTF procedures (anti-money laundering and counter-terrorism financing), which is standard practice for significant transactions in the cryptosphere, especially when certain triggers arise in the platform’s security system.
To unblock funds, the exchange service put forward a number of strict requirements.
The client had to provide comprehensive information about:
- his employment status;
- disclose in detail the sources of income;
- demonstrate the full history of the movement of funds until they were received in the wallet from which the transaction was made;
- explain the purpose of receiving crypto assets;
- provide supporting documents.
An additional complication was the exchanger’s requirement to undergo the KYC procedure (identity verification) not only by the client himself, but also by the party that initially sent bitcoins to his wallet.
What did we do?
Our team quickly took control of the situation and provided the client with full legal support throughout the process.
We helped prepare a comprehensive package of documentation in accordance with the requirements of the crypto exchanger, carefully built and substantiated the chronology of all transactions, and also established professional and constructive communication with the support service and the security department of the exchanger.
Thanks to our experience in cryptocurrency law and deep understanding of verification procedures in the financial sector, the unblocking process was carried out with extreme efficiency. Having started working with the client on Monday, we managed to achieve a full unblocking of funds by Wednesday.
The client received full access to his 0.7 BTC in the cryptocurrency account.
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