Bank freezing your funds? How to prevent account blocks during crypto cashouts

You’ve just realized profits — everything’s going great — until your bank suddenly halts the transfer and starts asking questions. Here’s what’s happening (and how to protect yourself from account freezes).

• Why accounts get blocked: Banks often freeze accounts or transfers when fiat arrives from a crypto exchange and the source of funds isn’t clear. Exchanges can also lock your account when you deposit crypto and can’t prove where it came from. The higher the amount, the stricter the checks. International transfers or irregular transaction patterns further increase the likelihood of additional scrutiny.
  
  
• Missing proof = serious trouble: If you can’t provide convincing documentation, your withdrawal may be halted, your account restricted, and your funds temporarily locked. Tax authorities may even estimate your gains — usually to your disadvantage. In some cases, unresolved suspicions can trigger penalties or further investigations.
  
  
• What proof can be required: Banks and exchanges may request various documents to verify the source of your funds. These can include bank or credit card statements showing deposits to exchanges, ATM or voucher receipts, and detailed wallet or exchange transaction histories. In some cases, you may also need to provide tax documents, gift or inheritance records, or ownership confirmations such as signed wallet messages. For staking, mining, or airdrop income, separate logs are often required. As a general rule, the larger the amount and the older or more fragmented your transaction history, the more extensive the documentation needs to be.
  
  
• New: Blockpit Source of Funds: With the new Proof of Source of Funds from Blockpit, this chaos is over. This entirely new, one-of-a-kind product lets you easily demonstrate the origin of your crypto funds to banks or exchanges — in a report designed specifically for their compliance requirements, saving you time, effort, and stress.
  
  No more endless screenshots or missing records: Blockpit automatically analyzes your complete transaction history across all connected wallets, exchanges, and blockchains in your Blockpit portfolio — creating a clear, standardized report banks and exchanges can trust.
  
  
• Preparation is everything: Plan ahead: announce larger withdrawals to your bank early and ask about thresholds (e.g., €10,000) or whether splitting transactions into smaller tranches helps. With Blockpit Source of Funds, you can generate your report before a planned transaction and submit it proactively — showing transparency, preventing delays, and speeding up your cashout.

<div fs-richtext-component="info-box" class="info-box protip"><div class="flex-info-card"><img src="https://assets-global.website-files.com/65098a145ece52db42b9c274/650c6f4b151815fb0be48cec_Lightning.svg" loading="lazy" width="64" height="64" alt="" class="icon-info-box"><div fs-richtext-component="info-box-text" class="info-box-content"><p class="color-neutral-800">With Blockpit, you can track your crypto portfolio for free and start documenting today. When needed, generate your Source of funds report in just a few clicks — for secure, fast, and stress-free crypto cashouts.</p></div></div></div>