In recent years, crypto trading and USDT (Tether) transactions have become very popular in India, especially through Binance P2P and similar platforms. However, many people are facing situations where their bank account has been put on hold by Cyber Police due to suspected links with online frauds or scams.
If your account has been frozen or funds are under lien after a USDT trade, this blog explains why it happens, what legal remedies are available, and how to protect yourself.
Why Cyber Police Puts Hold on Bank Accounts After USDT Trades?
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Fraud Complaints – A victim reports loss of money in a scam, and the money trail leads to your account.
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Unverified Traders – Trading with unknown persons on P2P platforms increases risk.
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Suspicious Transactions – Large or repeated crypto transactions flagged under RBI/ED monitoring.
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Fake Investment Groups – Many fraudsters use crypto as a medium to move scam money.
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Section 102 CrPC Orders – Cyber Police use this section (now Section 106 BNSS) to freeze suspicious accounts during investigation.
Impact of a Cyber Police Hold on Your Account
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You cannot withdraw or transfer money.
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Bank statement may show “lien marked” or “account on hold”.
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Financial activities like salary credits, EMI payments, and UPI transactions get disrupted.
Legal Remedies for Cyber Police Hold on USDT Trade
1. Confirm the Reason from Your Bank
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Visit your branch to check which Cyber Police station issued the order.
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Collect details of the Investigating Officer (IO) handling the case.
2. File Representation Before Cyber Crime Cell
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Submit documents such as:
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Aadhaar & PAN copy
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Bank statement
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Binance/USDT transaction history
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Chat records or invoices (if available)
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Request a No Objection Certificate (NOC) if your transactions are genuine.
3. Approach a Cyber Crime Lawyer
A lawyer can:
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Draft and submit representation before the Cyber Police.
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File an application before Judicial Magistrate (under Section 451/457 CrPC) for release of funds.
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File a Writ Petition in High Court (Article 226) if your fundamental rights are being violated.
4. Submit NOC to Bank
Once NOC is obtained, submit it to your bank for verification and account unfreeze.
5. Escalate to RBI Ombudsman
If the bank delays action even after NOC, file a grievance with the RBI Ombudsman via CMS portal.
How to Stay Safe While Trading USDT in India
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Trade only on trusted platforms like Binance with verified users.
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Do not engage in suspicious high-return offers via WhatsApp/Telegram groups.
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Keep all transaction proofs, UTR numbers, and trade IDs safe.
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Avoid receiving large sums from strangers.
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Report any fraud immediately to 1930 helpline and cybercrime.gov.in.
A Cyber Police hold on account for USDT trade is usually a precautionary step during investigation and does not mean you are guilty. However, without proper legal steps, your funds may remain blocked for months. By contacting the Cyber Cell, seeking a Cyber Crime Lawyer’s help, and approaching the Court if necessary, you can get your account unfrozen and protect your rights.
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