CEX freezing: Coinbase / Changelly / Binance — what to do
An exchange froze your deposit or account after 'dirty' USDT. What to do, how to recover funds, how to prevent it. A guide to working with CEX support.
"Coinbase froze my account after 100k USDT deposit" — a typical complaint on Reddit. A frozen deposit or account on a centralized exchange (CEX) is one of the most painful crypto scenarios. Funds are locked for years, support replies with templates. What actually works.
Why a CEX freezes
Exchanges are required to comply with AML/KYC under their jurisdictions' laws. Automated systems (Chainalysis KYT, TRM, Elliptic) scan every incoming deposit. If a connection is found to:
- a sanctioned address (OFAC/EU)
- a mixer
- a darknet market
- a scam address
- a previous hack
— the deposit is frozen automatically, and the compliance department takes over.
What to do right after a freeze
Step 1. Don't panic and don't write angrily to support
Angry tickets go to the end of the queue. The compliance department works with specific documents, not emotions.
Step 2. Gather the full chain
You need to prove the origin of every hop of funds before the deposit. Collect:
- Sender address and transaction history (via Etherscan/Tronscan)
- Source of that address (P2P platform, exchange, mining)
- Documents: order screenshots, chats, contracts
- If there were AML checks — report screenshots
Step 3. Request an AML report from an independent service
The exchange trusts its own systems, but your AML report from another provider is an additional argument. VerifAML produces a human-readable report you can attach to the ticket.
Step 4. Letter to compliance, not first-line support
First-line support are script bots. Request escalation to the Compliance Department. Phrasing: "I'd like to escalate this case to your Compliance team for a detailed review of source of funds."
Compliance typically responds in 5-30 days. Don't write daily — it doesn't speed things up but is annoying. One ticket with full documentation every 2 weeks is optimal.
If refused
Regulator complaint
- Coinbase/Coinbase UK — FCA (UK), FinCEN (US)
- Binance — local regulators depending on your region
- Changelly — depending on jurisdiction
A regulator complaint is a serious signal for the exchange. Often the case is revisited after this.
Lawyer
If the amount is significant (>$10k) — hire a lawyer with crypto-dispute experience. Pays off even at 50% recovery.
How to prevent a freeze
Check the sender address BEFORE the trade
The main rule. VerifAML instantly checks the address across many sources. If score is 50+ — don't give this address for a CEX deposit.
Don't withdraw to a CEX directly from a P2P wallet
Use an intermediate "clean" wallet. P2P wallets often receive "dirty" transfers — withdrawing from them to a CEX = risk. First to a clean wallet, then to the CEX.
Don't split deposits
Deposits of $9,999 instead of $10,000 are a red flag. Exchanges know this pattern well and block more aggressively.
Related materials
VerifAML is an informational service. Specific procedures depend on the exchange and jurisdiction.