Successful recovery of frozen crypto assets after prolonged AML review

In April 2025, our firm was engaged by a client whose funds had been unjustifiably withheld by a cryptocurrency exchange platform. The platform, operated by an offshore company, blocked the transaction citing an ongoing “AML review” - yet provided no timeline, progress updates, or meaningful communication for several months. Despite the client’s full cooperation and timely submission of all requested KYC/AML documents, the funds remained frozen.

Our firm provided end-to-end legal support throughout the process, which included:

• Detailed review of the platform’s user agreement to identify potential contractual breaches and procedural violations;
• Preparation of formal responses addressing all compliance-related inquiries on behalf of the client, including structured explanations and documentary evidence.

After multiple weeks of formal communication, detailed documentation, and well-reasoned legal demands failed to produce any meaningful response from the platform, it became evident that traditional legal channels alone would not be sufficient to resolve the matter.

At that point, our team escalated the situation strategically - applying external pressure on the platform’s ecosystem to force accountability through reputational and regulatory exposure. 

Corporate Background Investigation

In parallel with direct legal action, our team conducted in-depth background research on the platform’s ownership structure, corporate affiliations, and operational jurisdiction. This was a particularly challenging aspect of the case, as:

• The company managing the platform was incorporated in a jurisdiction with a closed corporate registry, limiting access to official records;
• No publicly available information about the company’s management, directors, or legal representatives could be verified.

Following weeks of pressure and strategic escalation, the platform’s compliance team released the funds in full in early July 2025, several months after the initial freeze.

This case serves as a powerful reminder that not all well-known platforms operate transparently or lawfully, particularly in the rapidly evolving world of crypto and fintech.

We advise all clients - both individuals and institutions - to exercise extreme caution before entrusting funds to third-party platforms. Always:

• Verify licensing and regulatory status, and ensure the platform operates under recognized oversight;
• Research corporate structure and management, especially if there is no identifiable team or public leadership;
• Scrutinize commercial partners involved in payment processing, liquidity, and KYC operations - they can be critical leverage points in dispute resolution.

Our firm continues to support clients facing challenges in crypto and digital asset environments, offering deep expertise in cross-border disputes, regulatory analysis, and financial investigations. If you are currently facing a similar situation where your funds have been frozen or withheld, our team is ready to help you assess the case and work toward recovery.