Bank account froze after selling btc (UK)

[Jo1992]

Has anyone ever had their bank account frozen after selling bitcoin? How was the process of getting it resolved? How long did it take? Any advice that I can speed the process up?

OK so sold around 5k worth via local bitcoins, various buyers. Few days ago my bank was frozen. Got zero help or answers or even questions from the bank. So I've done some googling and come to the conclusion that a SAR has been submitted due to sudden increase in money. Never really used this account and did so to separate it from salary for when tax season comes around in easy for me to know what is what. (probably not wise in hindsight)

So from my googling what the bank is calling "account specialist" is actually the nca deciding if I'm dodgy Dave or not and whether to investigate further. Nothing to hide so no worries there. Initially frustrated I requested my official complaint raised and have since had a response (again no info or help) but armed with the new information about SAR and the fact that legally cannot tell me anything I've replied with screenshots of my transactions of sales in hope it assists and speeds things along as they will then know where and why.

Is there anything else I can do to speed this up? I've read the hold is initially 7 days, followed by 30 and can be extended to 6 months. Obviously the bank cannot ask me for evidence(or anything else) due to the law but is there anything voluntary I can do? Really is a crazy system that you are kept in the dark.. While they also seem to investigate in the dark

[gentlemand]

various buyers

That's the prime reason you were frozen. Money laundering aside, they won't tolerate personal accounts being used for what they think is business. They'll freak even more so if it was previously dormant account.

After some noodling they'll ask you to withdraw your money and not come back.

You're better off asking here about the experiences of others - https://old.reddit.com/r/BitcoinUK/

[btcwish1]

Has anyone ever had their bank account frozen after selling bitcoin? How was the process of getting it resolved? How long did it take? Any advice that I can speed the process up?

OK so sold around 5k worth via local bitcoins, various buyers. Few days ago my bank was frozen. Got zero help or answers or even questions from the bank. So I've done some googling and come to the conclusion that a SAR has been submitted due to sudden increase in money. Never really used this account and did so to separate it from salary for when tax season comes around in easy for me to know what is what. (probably not wise in hindsight)

So from my googling what the bank is calling "account specialist" is actually the nca deciding if I'm dodgy Dave or not and whether to investigate further. Nothing to hide so no worries there. Initially frustrated I requested my official complaint raised and have since had a response (again no info or help) but armed with the new information about SAR and the fact that legally cannot tell me anything I've replied with screenshots of my transactions of sales in hope it assists and speeds things along as they will then know where and why.

Is there anything else I can do to speed this up? I've read the hold is initially 7 days, followed by 30 and can be extended to 6 months. Obviously the bank cannot ask me for evidence(or anything else) due to the law but is there anything voluntary I can do? Really is a crazy system that you are kept in the dark.. While they also seem to investigate in the dark

Whats the name of the bank?  it will be good to know so that we can avoid that bank.  Also, did you deposit the money in cash?  or it was bank transfer?

Thanks

[davis196]

I am selling BTC in localbitcoins for SEPA bank transfers and I never got any problems with my bank so far.
I'm expecting to have some issues in the future,but I'm not selling big amounts of btc.Maybe that's why I'm flying under the radars.I'm sorry about your issue,OP.I guess you will have to withdraw your money after the account is recovered and move to another bank.

[Ayiranorea]

I am selling BTC in localbitcoins for SEPA bank transfers and I never got any problems with my bank so far.
I'm expecting to have some issues in the future,but I'm not selling big amounts of btc.Maybe that's why I'm flying under the radars.I'm sorry about your issue,OP.I guess you will have to withdraw your money after the account is recovered and move to another bank.

Here there is difference between the way you make the trade and Op making the trade. Op has used the personal account with limits for large volume trades which means beyond the permitted amount of transaction a personal or a primary individual account can. For this one needs to have a registered business registered and connected to a business bank account. This will not limit you or hold the funds as it is particularly for large volume transactions and officially taxed funds.

[JackZalesskiy77]

Has anyone ever had their bank account frozen after selling bitcoin? How was the process of getting it resolved? How long did it take? Any advice that I can speed the process up?

OK so sold around 5k worth via local bitcoins, various buyers. Few days ago my bank was frozen. Got zero help or answers or even questions from the bank. So I've done some googling and come to the conclusion that a SAR has been submitted due to sudden increase in money. Never really used this account and did so to separate it from salary for when tax season comes around in easy for me to know what is what. (probably not wise in hindsight)

So from my googling what the bank is calling "account specialist" is actually the nca deciding if I'm dodgy Dave or not and whether to investigate further. Nothing to hide so no worries there. Initially frustrated I requested my official complaint raised and have since had a response (again no info or help) but armed with the new information about SAR and the fact that legally cannot tell me anything I've replied with screenshots of my transactions of sales in hope it assists and speeds things along as they will then know where and why.

Is there anything else I can do to speed this up? I've read the hold is initially 7 days, followed by 30 and can be extended to 6 months. Obviously the bank cannot ask me for evidence(or anything else) due to the law but is there anything voluntary I can do? Really is a crazy system that you are kept in the dark.. While they also seem to investigate in the dark

I've never been in this situation only because I've always tried very hard to avoid any behavior that would even come close to looking like money laundering. I do a lot of freelances and I tend to never withdraw money or do any transaction after the account gets replenished.

I mean, this really sucks what happened to you but I can see how the bank could have thought that the account was sketchy.

[Jo1992]

Bank was Monzo. I understand why they froze it but opening a business account to sell a personal possessions isn't the answer. I'm not buying and selling. Just withdrawing my capital gains.. Or was.

I'll check that reddit out. Its the NCA involvement that backed me up. And apparently 560000 SARs are issued a year, mostly to law abiding people. I know they're trying to stop laundering etc but to be when the ratio of innocent to criminal is so high its quite shocking its legal practice. I think with monzo being the new kid on the block they may be a little overzealous.


Would be good to hear from those that have already been through it

[jhonjhon]

Has anyone ever had their bank account frozen after selling bitcoin? How was the process of getting it resolved? How long did it take? Any advice that I can speed the process up?

OK so sold around 5k worth via local bitcoins, various buyers. Few days ago my bank was frozen. Got zero help or answers or even questions from the bank. So I've done some googling and come to the conclusion that a SAR has been submitted due to sudden increase in money. Never really used this account and did so to separate it from salary for when tax season comes around in easy for me to know what is what. (probably not wise in hindsight)

So from my googling what the bank is calling "account specialist" is actually the nca deciding if I'm dodgy Dave or not and whether to investigate further. Nothing to hide so no worries there. Initially frustrated I requested my official complaint raised and have since had a response (again no info or help) but armed with the new information about SAR and the fact that legally cannot tell me anything I've replied with screenshots of my transactions of sales in hope it assists and speeds things along as they will then know where and why.

Is there anything else I can do to speed this up? I've read the hold is initially 7 days, followed by 30 and can be extended to 6 months. Obviously the bank cannot ask me for evidence(or anything else) due to the law but is there anything voluntary I can do? Really is a crazy system that you are kept in the dark.. While they also seem to investigate in the dark

As you mentioned, you never used the account that much so if there's a sudden activity in the account and it involves a huge amount of money then it will really raise suspicion from bank so that is why the froze your account, I think it is now under investigation from their end and you can call their hotline for inquiry, as far as I know if the account is frozen they will send a letter regarding it or you can call them and they will inform you what the hold is all about.

[gentlemand]

I'll check that reddit out. Its the NCA involvement that backed me up. And apparently 560000 SARs are issued a year, mostly to law abiding people. I know they're trying to stop laundering etc but to be when the ratio of innocent to criminal is so high its quite shocking its legal practice. I think with monzo being the new kid on the block they may be a little overzealous.

I think these joke banks are going to be considerably twitchier than real ones. There are countless stories of people getting frozen for sending their mates some money or buying crypto p2p through it.

This is the forum you probably want - https://community.monzo.com

https://www.reddit.com/r/UKPersonalFinance/comments/8r96i1/urgent_help_monzo_closed_my_account_immediately/  this thread is a little alarming. It looks like Monzo sent money to the people who paid OP for coins through LBC without bothering to check anything. Best to keep a close eye on progress.

[TopTort777]

What will bank replay, when you will ask them to close your account and withdraw funds to other/new account? Will they answer no, because your account is frozen, or will do it after a claim in written format ?

Try to figure out how your funds are frozen. Totally (so you cant make a payment, withdraw from ATM or to other account) or you can move funds (but bank will do it and close your account)? 

[gentlemand]

What will bank replay, when you will ask them to close your account and withdraw funds to other/new account? Will they answer no, because your account is frozen, or will do it after a claim in written format ?

Try to figure out how your funds are frozen. Totally (so you cant make a payment, withdraw from ATM or to other account) or you can move funds (but bank will do it and close your account)? 

https://monzo.com/blog/2019/04/04/why-we-block-freeze-close-monzo-accounts

In the UK banks can't tell you why you've been frozen and they won't enter into any communication until some sort of decision has been made by the NCA. It's out of the user's hands.

[philipma1957]

So for 5000 pounds or 5000 euros  it was frozen?

[TopTort777]

What will bank replay, when you will ask them to close your account and withdraw funds to other/new account? Will they answer no, because your account is frozen, or will do it after a claim in written format ?

Try to figure out how your funds are frozen. Totally (so you cant make a payment, withdraw from ATM or to other account) or you can move funds (but bank will do it and close your account)? 

https://monzo.com/blog/2019/04/04/why-we-block-freeze-close-monzo-accounts

In the UK banks can't tell you why you've been frozen and they won't enter into any communication until some sort of decision has been made by the NCA. It's out of the user's hands.

I see…

I've had a bit similar situation. Company's account was closed due to a signal from "inner security team" (translation from Russian, I don't know how it is called in proper English), because company's received money from other company, which has a mass CEO (person was registered as chief director in 100+ companies).

Bank asked to provide tons of documents about the cargo, contracts and etc. But they said that they are not sure that this will 100% resolve the situation.

What was done - our companies CEO went to nearest bank office, write a claim, asking to withdraw funds to other account and the bank did it in 7 days.

[samcrypto]

What will bank replay, when you will ask them to close your account and withdraw funds to other/new account? Will they answer no, because your account is frozen, or will do it after a claim in written format ?

Try to figure out how your funds are frozen. Totally (so you cant make a payment, withdraw from ATM or to other account) or you can move funds (but bank will do it and close your account)? 

https://monzo.com/blog/2019/04/04/why-we-block-freeze-close-monzo-accounts

In the UK banks can't tell you why you've been frozen and they won't enter into any communication until some sort of decision has been made by the NCA. It's out of the user's hands.

That’s situation is very unfair, its your right to know why banks freeze your account. Luckily our banks will give notification about this one, and i didn’t experience any problem like this withdrawing my bitcoin. But don’t be scared if you are doing the right things, you’ll just need to wait for the process of your banks and you’ll be good.

[Jo1992]

As has been said UK banks aren't allowed to give any info.. And try calling monzo anyway.. Their automated system just hangs up on you after 20 seconds saying they are busy. Piss take really. So they can't ask/tell me anything hence why I'm looking for ways to offer evidence to speed up the process without being asked.

I'd moved most of the money to my savings account ba 100 so I'm not really bothered about them sending money back to source as they don't have it to send. Just the black mark currently against my name. Like everyone else I've got other problems going on my energy should be focused on

[yoseph]

various buyers

That's the prime reason you were frozen. Money laundering aside, they won't tolerate personal accounts being used for what they think is business. They'll freak even more so if it was previously dormant account.

After some noodling they'll ask you to withdraw your money and not come back.

You're better off asking here about the experiences of others - https://old.reddit.com/r/BitcoinUK/

Most banks don't tolerate the use of their services in the buying of cryptocurrencies at all, OP should have made sure that his/her bank was one of these banks before he decided to use their services, But i do believe any locked up funds may in the end be returned to the owners.

[LeonardHRinvest]

OP, if you want I can buy bulk BTC amount via cash, or Bank Transfer (under usual contract like "payment for invoice, for goods etc", not for BTC)

If you are interested PM me.

[Jo1992]

I'll check that reddit out. Its the NCA involvement that backed me up. And apparently 560000 SARs are issued a year, mostly to law abiding people. I know they're trying to stop laundering etc but to be when the ratio of innocent to criminal is so high its quite shocking its legal practice. I think with monzo being the new kid on the block they may be a little overzealous.

I think these joke banks are going to be considerably twitchier than real ones. There are countless stories of people getting frozen for sending their mates some money or buying crypto p2p through it.

This is the forum you probably want - https://community.monzo.com

https://www.reddit.com/r/UKPersonalFinance/comments/8r96i1/urgent_help_monzo_closed_my_account_immediately/  this thread is a little alarming. It looks like Monzo sent money to the people who paid OP for coins through LBC without bothering to check anything. Best to keep a close eye on progress.

Yes I wish I hadnt read that now. Do you know how he ended up with 5 accounts closed?  There was an update at the top stating but I couldn't find out what led 5 been closed?

[pawanjain]

This has happened to you because your account was idle for some time and then you received a bigger amount in it all of a sudden.
The banks generally investigate the source of such income due to money laundering reasons.
Generally such issues are resolved easily if you show the proof of income and that the money received is from a genuine source.
Since you are dealing with bitcoin here, you can't really show the authentication of the income since most banks are against cryptocurrencies.
In this case, you can directly go to the nearest branch of the particular bank and ask them to withdraw the from your account.
In most cases, bank do give out the money but they might trouble you a little in order to withdraw the amount.

[Jet Cash]

I'd never heard of Monzo. They have three offices, One in Moorgate in the City of London ( The Anglophone empire capital), one in Las Vegas ( The Gambling capital of the world), and one in Cardiff ( that seems an odd location ). It looks like an ideal setup for money laundering and tax evasion based on the addresses.