Crypto exchanges and P2P platforms closely monitor every transaction. For small businesses and freelancers, this is not good news: even if a transaction is fully legal, there is a risk that funds will be “frozen” by the internal security system until the origin of the funds is clarified. In such cases, it becomes impossible to withdraw the balance until the compliance department receives a full package of evidence proving the legality of the transaction and lifts the freeze.

 

Our client encountered such an issue on Kingex.io – a cryptocurrency and cash exchange service. Funds received as payment for marketing services were blocked. Standard explanations did not help move the process forward, so the Lawrange team joined the case.

 

Were we able to convince the platform to unblock the funds? We explain below.

 

Oral Agreements – A Challenge for Compliance

The client’s situation was unusual. Payment for real services had been received, but Kingex.io requested confirmations that were not readily available. In addition to standard documents, they asked for screenshots of correspondence with the sender of the funds. Since the client had agreed on the work orally, they could not provide a message history.

 

The case required a comprehensive approach. Therefore, we first defined the key steps to resolve it:

  1. Justify the legality of the transaction without a written communication history with the counterparty.
  2. Collect alternative evidence of the source of funds (Source of Funds).
  3. Prove that the sender’s wallet was not associated with illegal transactions.
  4. Support the client during the enhanced identity verification (KYC) process.

 

If unclear answers or weak arguments are provided to the compliance department, the risks include:

  • Assets remaining blocked for an indefinite period.
  • The transaction being subjected to additional review lasting several weeks.
  • A refusal to release the funds.

 

We understood the seriousness of these consequences and acted quickly.

 

How We Built the Process: AML Analysis, Evidence Preparation, and Support

Platforms do not respond to complaints, requests, or emotional assurances. They focus solely on facts and arguments that eliminate doubts with 100% certainty. Therefore, we shifted the emphasis from explanations to solid evidence. Our team’s work included five steps:

 

  1. Identification of the blocking reasons. We analyzed the request from Kingex.io to understand the specific compliance concerns. After identifying the reason for the block, we were able to address precisely those questions about the source of funds and the connection with the sender that most concerned the compliance team.
  2. Technical transaction verification. Using the AMLBot service, we conducted a professional audit of the sender’s wallet. The results showed a low-risk level, which became the main proof of transaction safety for Kingex.io.
  3. Preparation of a reasoned response. We drafted an official letter on behalf of the client in which we:
    • systematized the technical information about the transaction (date, time, hash);
    • confirmed that the funds were received as payment for marketing services provided to the sender company;
    • explained the specifics of oral agreements in the marketing sector, justifying the absence of chat screenshots;
    • added the results of the wallet audit conducted through AMLBot.
  1. Document package compilation. We prepared an invoice for the services rendered, helped the client take a proper selfie with the date and an identity document, and provided all necessary identification details (including an up-to-date phone number). As a result, any additional questions regarding the client’s identity and profile were eliminated.
  2. Legal support in communication with Kingex.io. We handled interaction with technical support and the compliance department. This allowed us to respond promptly to additional platform requests and ensure compliance with the regulated review timelines.

 

Each of these steps aimed to eliminate any ambiguity. Instead of providing information in parts, we formed a comprehensive response. Consequently, the compliance officer had no grounds for further questions or prolonging the review period.

 

Successful Unblocking and Full Access to Funds – The Final Outcome

A well-prepared letter and professional documentation convinced the compliance officer at Kingex.io to rule in favor of our client. The funds were successfully unblocked in full. In addition to regaining access to the assets, the client:

  • Preserved the account’s reputation, which is important for stable future operations on crypto platforms;
  • Received the compiled documentation and AML report, which can later serve as evidence in case of similar requests;
  • Saved time, as legal support helped avoid exhausting and unproductive communication with the service’s technical support.

 

The client was satisfied with the prompt resolution of the issue and the professional approach to document preparation and case support.

 

Have your assets been blocked on a crypto platform? Do not waste time – contact the experts at Lawrange for professional assistance! For a preliminary consultation, reach out to our manager.