With the growth of cryptocurrency trading in India, especially through P2P (Peer-to-Peer) platforms like Binance, Huobi, or KuCoin, many users trade in USDT (Tether) to buy or sell digital assets. However, a rising problem is that bank accounts get frozen due to USDT-related transactions when linked to cybercrime complaints.

If your account is frozen because of a USDT transfer, this blog explains why it happens, legal remedies, and how to get your account unfrozen.

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Why Bank Accounts Are Frozen in USDT Transactions

1. Fraud Complaints – If someone buys USDT with stolen money and routes it through your account, your account may be flagged.

2. Suspicious P2P Trades – Receiving money from unknown buyers/sellers without verification.

3. Cyber Crime Investigations – Orders under Section 102 CrPC (now Section 106 BNSS) by Cyber Police.

4. AML/KYC Concerns – Banks may freeze accounts if large crypto-linked funds come without proper documentation.

👉 Important: Freezing is not always punishment – it is usually a temporary investigation measure.

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Steps to Unfreeze a Bank Account Frozen Due to USDT

1. Confirm the Freeze Order

• Visit your bank branch and ask for:

  • Copy of the freeze order.

  • Contact details of the Investigating Officer (IO).

• Confirm whether full balance or only disputed funds are blocked.

2. Approach the Cyber Crime Cell

• Submit a written application with:

  • Aadhaar & PAN card

  • Bank statement of the disputed transactions

  • Proof of legitimate P2P trade (Binance order ID, screenshots, transaction history)

• Request a No Objection Certificate (NOC) for unfreezing.

3. Legal Remedies Through Court

If the Cyber Cell does not unfreeze:

• File an application before the Judicial Magistrate under:

  • Section 451 CrPC – release of property during trial.

  • Section 457 CrPC – return of seized property during investigation.

• Approach the High Court under Article 226 if your fundamental rights (Article 21 – Right to Life & Liberty, including livelihood) are affected.

4. Banking & RBI Escalation

• If your bank does not act even after NOC, file a grievance with:

  • Bank’s Nodal Officer

  • RBI Ombudsman through CMS portal

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Safety Tips for USDT Traders in India

1. Verify counterparties in P2P trades before accepting payments.

2. Use only trusted platforms like Binance with KYC-verified buyers/sellers.

3. Do not accept funds from third-party accounts not matching the buyer’s KYC details.

4. Maintain records of all trades (order IDs, chats, payment proofs).

5. Report suspicious activity immediately at 1930 or www.cybercrime.gov.in.

If your bank account is frozen due to USDT transactions, it is usually a result of a cybercrime complaint linked to the funds. With proper documentation and the help of a cyber crime lawyer, you can approach the Cyber Cell, Magistrate Court, or High Court to get your account unfrozen. Always trade carefully, maintain records, and verify counterparties to avoid such issues.

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Disclaimer

This blog is for informational purposes only and should not be treated as legal advice. We are not doing any advertisement or solicitation work. If you are a victim of cyber crime, immediately contact the National Cyber Crime Helpline 1930 and file a complaint on www.cybercrime.gov.in