Why do I have frozen withdrawals from a cryptocurrency exchange?

Various factors lead to frozen user withdrawals from an exchange, whether due to individual actions, such as using a VPN, or due to the exchange’s reputational problems. Knowing these risks is important for making better-informed decisions and choosing the right cryptocurrency exchange for your digital assets.

Can a cryptocurrency be frozen?

That said, this ability to freeze generally applies only to tokens. Despite popular belief, it is not possible to freeze the native asset associated with most blockchains, such as BTC, ETH, BNB or XRP — unless they are held on a centralized platform, such as an exchange or with a custodian.

What causes a cryptocurrency to be frozen on a blockchain?

Cryptocurrencies can be frozen on a blockchain through various means, such as court injunctions or smart contracts that restrict access to funds. These freezes can occur due to reasons like regulatory compliance issues, security concerns, or criminal investigations.