Binance user says $400K is frozen over US court order
A Binance user has reported being unable to withdraw approximately 400,000 USDT from his exchange account, claiming the restrictions are linked to an order from a US federal court in Colorado.
Summary
- A Binance user claims approximately 400,000 USDT remains inaccessible following a reported US court restriction.
- The account holder says he earned approximately 340,000 USDT through futures trading before withdrawals stopped.
- Binance customer support reportedly directed the user toward a Colorado federal court for further assistance.
- The trader claims submitting documents explaining his funds did not result in restored withdrawal access.
According to a November 12 post by cryptocurrency trader ye.koi, the affected account belongs to a user identified as Shawn, who says he earned approximately 340,000 USDT through futures trading before losing access to withdrawals.
The trader shared Shawn’s complaint on X, explaining that Binance customer support had directed him to contact the US District Court for the District of Colorado after he submitted documents showing the source of his funds.
Binance user reports 400,000 USDT withdrawal restriction
In the translated post, Shawn described the withdrawal restriction as unexpected and said the affected balance included both his original trading capital and profits from cryptocurrency futures.
“I made 340,000 in futures trading, and Binance froze my entire 400,000 account balance for no reason!” the complaint stated.
Shawn maintained that his trading activity was legitimate and that the transactions supporting his account balance could be traced.
He questioned why the restriction appeared to cover his entire account, rather than particular funds potentially connected to the reported legal proceedings.
The account holder said he had trusted Binance to safeguard his cryptocurrency before the restrictions prevented him from withdrawing the funds.
However, the post did not identify the transactions that allegedly prompted the restriction or provide the underlying court order establishing its scope.
The claimed trading profits and account balance have not been independently confirmed through account records.
Binance reportedly directs trader to Colorado court
The dispute continued after Shawn contacted Binance customer support and received a request to explain the origin of his cryptocurrency holdings.
According to his account, he supplied the requested documents but learned that the exchange could not independently remove the withdrawal restrictions.
He said customer support instead directed him to the federal court in Colorado to determine how he could challenge the order or provide further evidence.
The trader expressed frustration with the process because he lives in Asia and would need to deal with legal proceedings in another country.
After checking the court’s website, Shawn said he could not find a public submission option allowing an ordinary account holder to present documents or contest the restrictions.
Binance customer service reportedly explained that it was complying with requirements from the US District Court for the District of Colorado.
The exchange’s reported response advised the account holder to contact the court about available procedures and supporting documents or consult a lawyer.
Binance rules cover court orders and frozen crypto funds
Binance’s published law enforcement guidelines explain how authorities can request information and assistance in connection with criminal investigations.
The exchange requires relevant legal documentation and says authorities should identify the legal basis for their requests.
Its guidance distinguishes formal court orders from ordinary customer service inquiries, which follow separate procedures.
In a related report, crypto.news covered Binance’s warning about cryptocurrency transfers that could trigger compliance checks or law enforcement restrictions.
Binance co-founder Yi He warned users about receiving funds from suspicious sources, including informal USDT transactions and transfers linked to potentially risky wallet addresses.
She explained that users could face restrictions even when they did not personally participate in the activity that originally raised concerns.
The exchange’s compliance procedures may require customers to identify the source of individual deposits, alongside standard account verification information.
Binance account restrictions raise questions over access to funds
Binance has previously faced questions about how quickly it responds to requests from law enforcement agencies seeking to freeze cryptocurrency assets.
In July, a report on US enforcement requests described concerns that changes to the exchange’s handling of overseas freezes could delay investigations.
Binance disputed claims that it had reduced cooperation with US authorities, maintaining that it continued to process lawful requests.
Its official legal request portal provides procedures for submitting certain third-party court orders involving account information or restrictions.
The portal explains that Binance reviews such orders under applicable laws and reserves the right to challenge jurisdiction or the scope of a request.
In Shawn’s case, the public account does not establish whether the reported restriction involves a civil proceeding, criminal investigation or another type of court action.
Ye.koi asked Binance representatives to examine the complaint and help the account holder obtain further information.
The trader tagged several Binance-associated accounts in the November 12 post, including co-founder Yi He, while appealing to other cryptocurrency users to share Shawn’s account.
