[Guide] How I Unfroze My Exchanger BTC Deposit After AML Review.

[Royal Cap]

For the past few days, there has been a lot of discussion on this forum and other forums (Atcoinstalks) about signature funds deposited in an exchanger being held due to high AML scores.

Last week I too was scared when I deposited BTC from a non-custodial wallet (Trust Wallet) to a centralized exchanger (KuCoin) and my funds got held due to high AML scores. However, I contacted their support and was successful in unfreezing my funds. So I thought I would share that process with you so that those who face such fund blocks can unfreeze their funds.  Especially, users cannot properly prove their source of funds, which is why their funds are not unfrozen.

So first of all, as I want to say that I received my signature payment in a non-custodial wallet first, then I sent that fund to the centralized exchange. In this case, it was convenient to provide the two levels of source of my funds.

Step 1: Contact Support Team

• Contact KuCoin Support: So first I contacted KuCoin support and explained my whole issue.
• Collect Source of Funds Submission Link: Then the support gave me a specific link to submit a source of funds in my Mail which is like a form. Below I am giving that screenshot.
• Fill Deposit Information Disclosure Form: Enter that link and fill in the deposit information or source of funds form they gave and tell me in detail why I deposited there, what is the source of the funds and how I got my funds.
• Documents required to prove the source of funds: The documents required to prove the source of funds that I have given. For this, I have created a form for my SOF with ChatGPT like a template where I have filled in my information and made it a PDF and then given it to them. So what I have given there, I am giving the link to that form below, you can download and use it.

Step 2: Prepare the document and fill the form

• Signature Campaign Link and Payment Report: So here is the link to the thread from which I received the payment and the payment report. By payment report, I have shown the spreadsheet here to show that I am really the genuine person.
• Transaction history of payments from the campaign to Trust Wallet: Transaction history of payments from the campaign to non-custodial (Trust wallet), so here I have extracted a PDF report through Blockchair from where you can download the complete transaction history received in your wallet in PDF format. So you can download it. I am giving the link. You can download it in PDF format by just entering your wallet address there.
• Transaction history from Trust Wallet to KuCoin: Then here is the link to the transaction history of the KuCoin exchangers to which I sent my funds from Trust Wallet.

After submitting all the documents and forms, they released my funds after about 48 hours and deposited them in my KuCoin account.

They Give Me This Form	My SOF PDF Demo

Resources
1. The SOF_Template Docx File
2. Blockchair Transection Record Download.



However, I do not know what the process will be like for other exchangers. Maybe it will be the same process. Especially if you fill out the doc file link that I have given and put it in the source of funds, I hope your funds will be unfrozen.

So my advice here is that those of you who will receive signature payments, must first receive them in a non-custodial wallet first, so that you can provide proof of at least two step transaction records. So if you can keep it like this, I hope you will get your funds back very easily.

[Bitcoin-Forever]

For the past few days, there has been a lot of discussion on this forum and other forums (Atcoinstalks) about signature funds deposited in an exchanger being held due to high AML scores.

This is the issue on ground, some crypto exchanges are taken it irresponsibility to freeze users account when they receive a transaction from anything that has to do with mixers or any unidentified source of transaction, that is why they will mostly want that there are specific platforms that you should avoid making transaction from, the moment they see any suspicious transactions on you account.

Then they try to place a restriction upon it and demanded you to show the proof of of the money is being sourced, because they are also going through a serious AML check, which is one of the key disadvantage of using a centralized platform because you are under surveillance with any transaction you made even if they are legit, you can still be questioned.

[BitMaxz]

I experienced the same thing on different exchanges multiple times, but I didn't make a document similar to yours; I just told them that via live chat support that I am getting paid from the signature campaign, and I can provide a spreadsheet and can sign a message from my wallet to prove that I own that address before I send the coins to exchange.  
It solved it without providing anything but explaining to them and unfreezing my account immediately without asking for the spreadsheet.

After that I changed my BTC address because it was flagged with a high AML score. That is why it's recommended to keep receiving coins in your wallet first before sending them to the exchanges and always scan your address if it has a high AML score before sending it to the exchanges.

It's a hassle if you do that with a form or documents. I think it will be a last resort if the exchange doesn't accept your explanation, providing this as proof that you don't do anything illegal.

[un_rank]

A template for submitting source of funds can be useful but the guide to unfreeze funds is highly subjective, the process can be different for another user on the same exchange. From the point you contact support, the response you get determines how the conversation goes from there.

- Jay -

[coinlary]

I agree with what unrank posted above. It differs to the extent that you can contact the support and they will review and just unfreeze it if what you wrote to them is explanatoryenough for what they need . While some also depends on the person handling the case as a support. if it gets to the right person faster, they may not require much.

It also depends on how those funds can affect them. If they already raise some warning regarding some source and your end up making the mistake , you may spend ages trying to proof your self clean  .
 

[Cookdata]

You don't deserve this kind of treatments from an exchange because you deposited a coin. They are very fond of this nonsense. You will likely encounter another account freeze again as far as this useless kucoin is concerned.

Word of advise, avoid Kucoin.

[Hamza2424]

After that I changed my BTC address because it was flagged with a high AML score. That is why it's recommended to keep receiving coins in your wallet first before sending them to the exchanges and always scan your address if it has a high AML score before sending it to the exchanges.

Came to say the same thing here bro, OP should not use KuCoin anymore. Give it some time if he could. They might have unfrozen the coins for now, but in the future, they can do it again. Binance has almost the same kind of method. They call it RFI, but it depends. They don't freeze funds but give you a 15-day period, as far as I know.

So by that time, you have to give them a reason, and your funds will be free to use. But you should not use centralized exchanges at all without confirming the AML first.

Always check the AML score, and if it's high, never send them to exchanges.

[BitMaxz]

Came to say the same thing here bro, OP should not use KuCoin anymore. Give it some time if he could. They might have unfrozen the coins for now, but in the future, they can do it again. Binance has almost the same kind of method. They call it RFI, but it depends. They don't freeze funds but give you a 15-day period, as far as I know.

So by that time, you have to give them a reason, and your funds will be free to use. But you should not use centralized exchanges at all without confirming the AML first.

Always check the AML score, and if it's high, never send them to exchanges.

Yeah, I remember they gave you some time to withdraw your funds out from Binance, but I just responded to their email about the AML issue since I didn't have the option to trade or exchange since I didn't trust other exchanges than Binance before. Luckily they remove the restrictions because my reason is about the signature campaign; I never did anything illegal, and I said it's a hard-earned coin, not stolen. 

I think even if your wallet has a low AML score, it sometimes triggers their AI or automated system, automatically suspending/restricting or freezing you without a high AML score. Their bots have their own way to detect suspicious transactions, but using an AML score checker is still a must to reduce the risk of triggering the bot.

Honestly, if it's allowed to keep changing our receiving address every week from the campaign, I am going to do that just to avoid this AML issue.

[aioc]

Word of advise, avoid Kucoin.

I'll take this advice; I don't want to go through that process. The guide is not absolute, and it's subjective, and it's based on how they investigate your case; you're lucky that their decision favors you, but how about the others? Their investigation is not uniform in all cases.
But thanks to OP for posting this, so we now know we have to avoid Kucoin.

[Darker45]

That's quite a long process, OP. And it seems so unfair. You don't deserve to be treated that way.

If there are necessary adjustments to be done, it should be coming from KuCoin, or any centralized exchange for that matter, and not from you or their customers.

I know it's the regulatory policy, but I don't really understand why they can't just reject and return the flagged funds rather than accept them, freeze them, and hold them hostage while squeezing all kinds of sensitive information out of you. After all, it's not even in the thousands or even hundreds.

You're being patient, submissive, and compliant, OP. Those are probably good qualities especially if you've got funds stuck with them. But you're being bullied.

[lovesmayfamilis]

One more interesting point: have you, OP, independently checked your level of AML risk? If so, what result did you get, what value? What is the risk threshold that makes the exchange "show distrust"? Currently, all platforms recommend checking their coins in advance to avoid additional checks in the future. No matter how stupid it may look, you have to follow these rules, although everyone understands that this is just manipulation to please regulators. I have used centralized exchanges before, and I have never experienced such situations. Now the situation is changing, which means that you need to pay more attention to where you transfer your assets and how much information you are willing to disclose about yourself.

[sergiorus]

OP have you ever deposited BTC from that wallet on Kucoin or was it the first time?

I agree with someone in here who said these things are usually quickly resolved in a livechat with a support agent (unless the amount of money is really significant) and you probably wasted a bit of your time taking it so seriously.

Also to everyone saying ''avoid Kucoin'' - doesn't work like that. All centralised exchanges have automatic AML checks, could have happened with literally ANY platform.

[New Judgement]

I know it's the regulatory policy, but I don't really understand why they can't just reject and return the flagged funds rather than accept them, freeze them, and hold them hostage while squeezing all kinds of sensitive information out of you. After all, it's not even in the thousands or even hundreds.

They won’t just reject and return the flagged money, because their main purpose is to frustrate any suspected money laundering activities. The more money they freezes, the more the regulators will be happy with them. Who knows if they will get some operational incentives when they come top in freezing accounts suspected for money laundering. The aim is to keep those funds in their possession and not return it to the owners. Also the size of funds don’t matter.

You're being patient, submissive, and compliant, OP. Those are probably good qualities especially if you've got funds stuck with them. But you're being bullied.

hahaha, when your funds is being held, of course you will have to be patient and submissive. Not as if op had other choice than complying with whatever they were demanding from him. In my place there is a saying that, he who is carrying a pot of oil in his head, don’t start a fight.