In recent years, cryptocurrency exchanges have significantly tightened their compliance and sanctions policies. As a result, many individuals and businesses face sudden account freezes and restrictions on withdrawals. This situation is not only stressful, but also legally complex — especially when assets of considerable value are involved.
At Capital Group Legal Ltd, we specialise in representing clients in cases of frozen crypto assets, combining knowledge of both UK sanctions law and international dispute resolution.

Exchanges may suspend deposits or withdrawals for a variety of reasons:

• Sanctions compliance – Exchanges operating in or connected to the UK, EU, or US are obliged to comply with sanctions regimes, including measures against Russia and Belarus. This often results in enhanced due diligence (EDD) or temporary holds.
• Anti-Money Laundering (AML) checks – Sudden inflows or transfers linked to high-risk jurisdictions may trigger manual reviews.
• Regulatory pressure – Authorities such as OFSI (UK), OFAC (US), and FinCEN issue regular guidance, which exchanges implement strictly to avoid penalties.
• Risk management – Even if a client is not on any sanctions list, exchanges often adopt a conservative approach, blocking accounts until they are fully satisfied with the source of funds (SOF).

If your assets are frozen, you are not automatically guilty of wrongdoing. In most cases, freezes are preventive compliance measures, not criminal sanctions. You retain the right to:

• Receive clear information about the grounds for the freeze;
• Provide supporting documentation (KYC / SOF);
• Escalate your case to the exchange’s compliance or legal department;
• Seek legal remedies, including court intervention, if the exchange acts unreasonably or unlawfully.
• UK courts have already confirmed that crypto assets constitute property and can be protected through proprietary injunctions, disclosure orders, and other interim measures.

Our team provides end-to-end support:

1. Case Assessment – reviewing the exchange’s correspondence and identifying the legal basis of the freeze.
2. KYC / SOF Strategy – preparing a professional package of documents to satisfy compliance requirements.
3. Direct Negotiations – engaging with the exchange’s compliance/legal teams to expedite review.
4. Regulatory Escalation – where necessary, complaints to regulators such as the FCA or OFSI.
5. Court Action – in serious cases, applying to the High Court for injunctions or disclosure orders to protect your assets.

If your crypto assets have been frozen, time is critical. The earlier you act, the stronger your position becomes. Contact us for a confidential consultation — we will analyse your case and propose a clear strategy tailored to your circumstances.