Published on 2026-02-07T17:14:00.000Z by Unigox Team
Michael from Kerala woke up one morning to find his entire savings frozen. All ₹8 lakh. Gone. Not stolen... just locked.
His crime? He sold USDT on a P2P exchange to someone who seemed legitimate. The buyer sent ₹80,000 from their bank account. Michael released the crypto. Transaction complete.
Except the “buyer” was a scammer. They had tricked an innocent victim into sending that ₹80,000, promising fake investment returns. When the victim realized the fraud and reported it to police, the money trail led straight to Michael’s account.
Michael did nothing wrong. His account was frozen anyway.
This isn’t a one-off story. It’s happening to thousands of Indian crypto traders right now.
The Scale of the Problem
In 2025 and into 2026, cybercrime cells across India froze countless bank accounts linked to P2P crypto trading. Courts have documented cases where:
- A ₹93 crore account was frozen over a ₹200 disputed transaction
- Traders lost access to funds for 3 weeks to 6+ months
- Even transactions as small as ₹600-₹1,700 triggered freezes
The mechanics are simple but brutal. Under Section 102 of the CrPC (Code of Criminal Procedure), police can freeze any property linked to a crime. When scam money flows through your account. Even if you had zero knowledge of the fraud, your entire account gets locked pending investigation.
Courts have ruled that only the disputed amount should be frozen, not the whole account. But enforcement is inconsistent, and innocent traders pay the price.
How the “Bad Money” Chain Works
Here’s the trap most traders don’t see coming:
Step 1: Scammer tricks Victim A with a fake investment scheme or lottery scam
Step 2: Scammer tells Victim A to send ₹80,000 to “complete the investment” (they give Victim A your bank details)
Step 3: You receive ₹80,000 from Victim A, thinking it’s a legitimate P2P buyer. You release the USDT.
Step 4: Scammer vanishes with your crypto. Victim A realizes the fraud and reports to police.
Step 5: Police trace the money → see it entered your account → freeze everything.
The result: You’ve lost your crypto and your bank account is frozen. Even though you were just trying to trade legally.
Real Stories from Indian Traders
Ajay (Uttar Pradesh): ₹47,000 frozen across multiple accounts. Linked to cases in Punjab and Chhattisgarh. Told by authorities he “may never get it back.”
Nikhil (West Bengal): HDFC account frozen with ₹3,115 locked. Spent 3+ weeks dealing with police, updating KYC, and providing documentation before restoration.
The ₹93 Crore Case: A court documented an account with ₹93 crore balance frozen over a mere ₹200 transaction. The judge called for “compassion and caution” but freezes keep happening.
Why Current “Solutions” Fail
Crypto Debit Cards (RedotPay, etc.): Load crypto, spend as fiat. Avoids P2P, but limited adoption in India, high fees, and doesn’t solve the on/off-ramp problem.
Centralized Exchanges (CoinDCX, WazirX): Direct UPI/IMPS deposits reduce risk, but users still report freeze incidents on these platforms. Withdrawal friction remains a barrier.
Decentralized P2P (P2P.me, etc.): Pioneered decentralized USDC/INR trading via UPI, but smaller liquidity pools and steeper learning curves limit accessibility.
Avoiding P2P Entirely: Many traders are giving up on P2P completely. But this kills access to the crypto market for millions of Indians.
The Unigox Solution
We built Unigox specifically to eliminate the “bad money” risk while keeping P2P accessible. Here’s how:
Verified Counterparties Only
Unlike Binance P2P where anyone can trade with minimal checks, every trader on Unigox completes KYC verification. Reputation systems and transaction history mean you know who you’re dealing with.
The result: Scammers face KYC accountability and documented transaction histories, making fraud significantly riskier and “tainted money” flows are dramatically reduced.
Direct UPI/IMPS Integration
Buy crypto: UPI → Unigox wallet → crypto (no intermediary)
Sell crypto: Crypto → Unigox wallet → IMPS/UPI directly to your bank
No unknown P2P counterparties sending you money. Just direct, verified transactions through India’s trusted payment rails.
Smart Escrow Protection
Funds are locked until both parties confirm the transaction. Dispute resolution systems and automated cancel flows prevent scammers from using you as a money mule.
Your crypto only releases after payment is verified.
Transparent Audit Trail
If questions ever arise, Unigox provides complete documentation of every transaction. Official trade confirmations you can present to authorities by providing clear proof of legitimate trading activity that can help accelerate the verification process.
What Indian Traders Are Saying
The demand for safer P2P is clear from X (Twitter):
“Never do p2p trading as govt like India in collaboration with bank and cyber found a loophole to freeze everyone’s account who does usdt trading after paying 30% taxes saying it’s fraud money” @sandipdey2
“Avoid P2P trading in India, as it could result in a lien or freeze on your bank account the following day.” @kazani351
“Some banks in India freeze your account when you do P2P on Binance. It happened to me.” @governingweb3
“P2p mei bahut bank account freeze hua hai.” @jattboi83
The message is clear: traders want P2P without the freeze risk.
Trade With Confidence
Here’s what changes when you switch to Unigox:
Before: Wake up to frozen account, spend weeks dealing with police, pay lawyer fees, pray your savings return.
After: Trade with verified users, cash out directly to your bank via UPI/IMPS, complete documentation if ever needed.
The math is simple: Verified counterparties + direct payment rails + smart escrow = dramatically reduced freeze risk.
Get Started
- Sign up at unigox.com
- Complete KYC (usually takes just a few minutes)
- Try your first trade with a verified counterparty
- Cash out via UPI/IMPS - directly to your bank, no freeze risk
Join a growing community of Indian traders who’ve switched to verified P2P. Your bank account will thank you.
Ready to trade without the freeze anxiety? Sign up at Unigox →
Written by Unigox Team
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