Exchange refuses payout: how investigation helps you get your balance back
Date: | Week: 29 | Reading time: 7 minutes | Updated: Author: Tyler Dijst
In short
Exchange refuses withdrawal? It can mean two very different things: a routine check on where your funds came from, or a platform that never intends to pay. From the outside, the difference is rarely visible. That is why it is wise to have someone look into it calmly before you take further steps.
Paucitas is an independent expert firm in the Netherlands that investigates crypto fraud and establishes the origin of crypto assets, in hundreds of cases a year. We come across both situations regularly.
Get in touch with Paucitas or ring +31 20 244 5774. In a free intake you will hear what is most likely going on in your case.
In a nutshell
Frozen funds leave you feeling powerless. Sometimes a sound explanation of where the money came from resolves it and you regain access to your own funds. Sometimes the platform itself is the problem. Paucitas works out which of the two it is.
You wanted to withdraw your crypto or pounds, but it will not go through. The exchange asks for extra documents, gives a vague answer or has stopped responding altogether. Perhaps the platform even asks you to pay something first. That is frustrating and often worrying: is your money still safe?
We understand. You are not alone, and by no means every refused withdrawal means something is wrong. In this article you can read what may be happening, what you had better not do and how Paucitas helps. What an exchange is exactly is explained in our glossary.
Exchange refuses withdrawal: what does it mean?
A legitimate exchange is required by law to know whose money it is and where it came from. With a larger withdrawal, a new bank account or an unusual pattern, the platform may therefore hold your withdrawal and ask for an explanation. That is a nuisance, but it does not mean you are suspected of anything.
There is another possibility too. Some platforms let your balance grow nicely but never pay out. That is a fake crypto platform. The tricky part is that both situations look the same at first: a message saying the withdrawal has not gone through.
Is it a routine check or an unreliable platform?
You cannot tell at a glance. There are, however, red flags that MAY indicate the platform itself is the problem:
- you have to pay tax, a deposit or “release fees” before you can withdraw;
- the platform does not appear on the regulator's public register;
- the contact who introduced you to the platform pressures you or disappears;
- your balance rose strikingly fast, yet you have never been able to withdraw before.
Do you recognise one or more of these signs? Then pay nothing until someone has looked at it. Also read tax or a deposit before withdrawal. If you see none of these signs, it is often a question that can be answered with good evidence. You only know for certain once Paucitas has examined it. Unsure? Get in touch, or ring +31 20 244 5774. You can call at any time, 24/7.
How does Paucitas help when your funds are frozen?
Paucitas works everything out: the transactions, the route of the money, the platform, the documents and the timeline. We do all tracing ourselves, without tracing tools. We also go through all conversations, documents, emails and other communication with the platform, so that a complete picture emerges, with a timeline and an overview of where all the money went. If it is a routine check, we set out the origin of your funds in a report anyone can follow step by step. You hand that report to the platform yourself.
If everything points to an unreliable platform, we map out where your money went. That way you know where you stand and what the next steps are.
An example from practice
A woman of around 60 wanted to sell her crypto after a few years. The exchange froze her withdrawal and asked where the funds came from. She still had old bank statements but no longer remembered which wallets she had used.
Paucitas mapped the route: from her first purchases, through her own wallets, to the exchange. She sent the report to the platform herself. After review, she regained access to her funds.
Paucitas takes privacy very seriously and never shares clients' personal details. This is a composite example: names, amounts and details have been changed. The situation is one we see in practice.
What does the investigation give you?
Clarity, and a file you can work with. Sometimes the report answers the platform's question and you regain access to your own funds. Sometimes the platform proves unreliable and you know where your money went. And sometimes it turns out to be a technical error, such as a deposit on the wrong network, which can be resolved with the right details.
What the platform decides is up to the platform. Paucitas does not promise an outcome, but makes sure your side of the story is on paper in a way that can be checked.
What had you better not do?
Never share your seed phrase or passwords, not even with someone who says they can help. It is best not to pay extra fees to release your money. And beware of anyone who approaches you promising to get your funds back: that is often a recovery scam. Do keep all messages, emails and screenshots from the platform.
Is the platform registered?
Crypto firms serving UK customers must be registered with the FCA. You can check the Financial Services Register and the FCA Warning List of unauthorised firms. A platform missing from the register is a signal, not proof. Paucitas takes it into account in the investigation.
What can you do with the Paucitas report?
The report shows whether money is still available, or where it went, and what the next steps are. If it is a routine check, you send the report to the platform yourself. If it is a scam, one of those steps is reporting it to Report Fraud or, in Scotland, Police Scotland, and the Paucitas report is then a strong attachment that sets everything out fully and clearly. More on possible steps in the step-by-step plan after crypto fraud.
- Costs: every investigation is tailored. You receive a bespoke quote beforehand that we go through together, with no surprises.
- Turnaround: from the same day to around two weeks.
- Availability: you can ring at any time, we answer the form within 1 to 3 hours, and email within 24 hours, usually the same day.
Are your funds stuck on an exchange? Get in touch for a no-obligation introduction, or ring +31 20 244 5774.
Sources: FCA, Financial Services Register; FCA Warning List; Report Fraud; Police Scotland, scams and frauds.
Do you have questions about this blog?
Feel free to get in touch with Paucitas. Paucitas can be reached by phone 24/7, including evenings and weekends. Through the contact form we usually reply within 1 to 3 hours, and we answer e-mail within 24 hours.
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Frequently asked questions when an exchange refuses a withdrawal
Why is an exchange holding my withdrawal?
Paucitas finds it is often because the platform is legally required to know where your funds came from. That is a routine check. Sometimes the platform itself is unreliable. Paucitas works out which applies to you.
Does a refused withdrawal mean the platform is fake?
Paucitas sees that this is not always the case. By no means every refusal points to fraud. Red flags include having to pay before you can withdraw and a platform without registration.
The platform wants tax or a deposit first. Should I pay?
Paucitas advises: pay nothing until someone has looked at it. A legitimate exchange deducts fees from your balance and does not ask for a separate payment up front. Paucitas is happy to take a look with you.
Can I get my money back after a refused withdrawal?
Paucitas: that depends on your situation. If you still have access to your own wallet or account holding funds, there may still be options. If everything has been sent to the fraudsters, the picture is different. That cannot be judged from a distance. Paucitas first looks at your situation and tells you honestly what is and is not possible. Be careful with anyone who promises in advance that your money will come back. In doubt? Contact Paucitas and you will know where you stand.
What does an investigation into frozen funds cost?
Paucitas tailors every investigation. You receive a bespoke quote beforehand that we go through together, with no surprises. The intake is free and without obligation.
From Amsterdam, for the whole of the UK
Everything can be done fully online. Prefer to meet in person? You are very welcome at our office in Amsterdam, by appointment.
Paucitas is an independent expert firm based in the Netherlands that, for clients across the UK, investigates investment fraud and crypto fraud, establishes the origin and legitimacy of crypto assets and prepares expert reports for legal proceedings and compliance.
Your own situation
If you are reading this, you probably have a question about your own situation. That is exactly what Paucitas does.
The first step is contact by phone. You can book that call by phone or through the contact form, so you do not have to wait. In the call we look together at what can factually be established in your case and what Paucitas can examine for you.