AML checks: a legal way to seize money or a real necessity?
More and more stories describe exchangers and exchanges freezing user funds under the pretext of an AML check. People send cryptocurrency but receive a freeze notice and a demand to prove the origin of funds. Here is how the scheme works and why it can become a tool for abuse.
How AML scoring works and why it is dangerous
AML systems assess the history of your coins rather than you. They analyze transaction chains 5–10 steps deep for links to mixers, sanctioned addresses or illegal platforms. If such a node appears, the risk score rises and the transaction may be blocked.
An honest user may not know that they received “dirty” coins through P2P or from a client. The exchanger then demands proof that the funds are legitimate or keeps them blocked.
The “request from competent authorities” scheme
An exchanger freezes funds and claims that authorities requested the block, but provides no official documents. The money remains frozen indefinitely. Without a verifiable document and official case number, that explanation is not sufficient.
Why this became widespread
AML controls place a heavy burden on exchangers and exchanges through compliance costs, specialists and monitoring systems. Some platforms over-block to reduce risk, while dishonest ones use checks to seize funds.
How to avoid becoming a victim
There is no absolute guarantee, but a few rules significantly reduce the risk:
- Check your coins with an AML scanner before exchanging.
- Open the exchanger only through our monitoring service so the visit can be verified.
- Do not use mixers or services with a questionable reputation.
- Keep source-of-funds documents and transaction details.
- Choose exchangers with transparent policies and genuine reviews.