Coinbase or Binance Froze My Account: What To Do Now

My exchange froze my account. What do I do first?

Do not panic, do not open new accounts to get around it, and do not talk to anyone who contacts you offering to help. Log in through the official app or website only, read the exact wording of the restriction, and look for a verification request or support case attached to it. In most cases a freeze is a compliance review waiting for documents, and it ends when you send the right ones.

We have been through this ourselves: both Coinbase and Binance froze accounts of ours, on top of PayPal and Stripe. So this guide is written from the inside.

Warning: the scam that targets frozen accounts

The moment you complain in public about a frozen account, fake "support agents" and "recovery services" will message you on X, Telegram, Discord and email. They are all scams. Real exchange support will never:

• Contact you first through a direct message on social media.
• Ask for your password, 2FA code or seed phrase.
• Ask you to move funds to a "safe" wallet or pay a fee to unlock the account.

People lose more to these scams than to the original freeze. Use the support link inside the official app. Nothing else.

Why do exchanges freeze accounts?

An exchange holds your coins for you, and regulators treat it like a financial institution. That means anti money laundering duties, which is what almost every freeze comes back to. The usual triggers:

• A source of funds review. A large deposit or a change in how you use the account prompts questions about where the money came from.
• A deposit from a flagged address. Exchanges screen incoming crypto. Coins that passed through a mixer, a hacked wallet or a sanctioned service can freeze the account that receives them, even if you had no idea.
• Business use of a personal account. Receiving customer payments into a personal exchange account is one of the most common triggers for merchants. Exchanges expect business activity on business accounts.
• Location and login changes. A new country, a VPN or a new device can look like account takeover.
• Incomplete or outdated verification. Exchanges refresh KYC over time and restrict accounts that fall behind.

What to send support

Answer every request once and completely. A tidy package moves faster than a trickle of replies.

• Up to date ID and proof of address, if they ask.
• A clear explanation of where the funds came from: the bank transfer that bought them, customer invoices, salary or other income.
• For a flagged deposit: who sent it, why, and any proof of the underlying deal.
• For business use: your company details, and a plan to move that activity to a business account or a proper payment setup.

Keep every case number and write down dates. If support goes silent for weeks, reply on the same case asking for a status and a timeline in writing.

How long does an exchange freeze last?

Anywhere from a day to several months. Simple verification refreshes clear quickly. Source of funds reviews on large amounts take longer, and cases involving flagged funds or a law enforcement request can run for months with little information. The single biggest factor you control is how fast and how completely you answer.

Where to escalate

If the official process stalls, file a formal complaint through the exchange's complaints procedure rather than the normal support chat. In the EU, exchanges licensed as crypto asset service providers under MiCA are required to have a complaints handling procedure. After that, the regulator that licensed the exchange is the next step. Outside the EU, check which authority supervises the entity your account is actually with.

How to make sure it never happens again

The real lesson took us two frozen exchanges to learn. An exchange is a place to convert, not a place to keep money or receive payments. When your coins sit on an exchange, the exchange holds the keys, so the exchange decides when you can have them. That is exactly the same problem as a PayPal balance, just in a different currency.

• Hold what you own in your own wallet, where you hold the keys. Our guide to self custody explains it in plain English, and hardware vs software wallets helps you pick one.
• Receive customer payments straight into that wallet, not into an exchange. A non-custodial gateway like GriffNode gives every order its own address generated from your wallet's xPub, so payments go from your customer to you and never pass through anyone else.
• Use the exchange only when you cash out, with a business account if you are a business, and keep the records that show where each payment came from.

If a processor or bank is the one holding your money right now, see our guides for Stripe, PayPal and frozen business bank accounts.

Frequently Asked Questions

Why did Coinbase or Binance freeze my account?

Usually because of an anti money laundering review: a source of funds check after a large deposit, a deposit from an address flagged by their screening, business payments received into a personal account, unusual logins, or outdated identity verification.

How long does an exchange account freeze last?

It can last from a day to several months. Verification refreshes clear quickly, while source of funds reviews and cases involving flagged funds take longer. Answering document requests quickly and completely is the biggest factor you control.

Is someone offering to unfreeze my exchange account legit?

No. Exchanges never contact you first through social media direct messages, never ask for your seed phrase or 2FA code, and never ask you to move funds or pay a fee to unlock an account. Use only the support link inside the official app.

How do I stop an exchange from freezing my crypto?

Do not keep funds or receive payments on an exchange. Hold crypto in a wallet where you control the keys, receive customer payments directly into it through a non-custodial gateway, and use the exchange only to convert when you cash out.