What to do if my Bank Account is blocked after P2P deal ?

Bank account getting blocked after a P2P deal is very common these days. Bank chain dispute is a new form of scam which is going around making life miserable for all P2P users, at times ordinary people who are not related to crypto are also affected by this scam.

Why Bank Account gets Banned after P2P ?

After doing a P2P deal, the other party calls their branch and tell them their account has been hacked/compromised and the payment may be reverted. This blocks the payment and majority of times your account gets banned.

Why P2P Merchants do that ?

P2P merchants don’t do that necessarily, A merchant deals with a normal user for buying/selling crypto. Afterwards the same merchant deals with you. When the “normal user” files a dispute , the merchant account gets banned and all user account with whom the merchant did a P2P trade. So a merchant with 100% feedback and active trades does not mean that you will not end up with this scam.

But P2P Exchanges are Legit, How Scammers are doing this ?

Scammers buy verified accounts from users for $20-$50 / account. The accounts they buy are KYC’d, after buying such account they select a merchant and then make trades with them and after buying USDT they dispute the payment amount after withdrawing USDT from their crypto exchange account. So if you see anyone selling/buying such accounts be very mindful to educate everyone how dangerous it is.

Precautionary Measures

While there is no fool proof method to stay safe from such scams, what all we can do is follow some precautionary measures to minimize the risks :

  • Don’t receive payments in your main bank accounts
  • Use EMI (SadaPay , NayaPay , Easypaisa etc)
  • Do not send money from EMI to your main account
  • Follow standard buying/selling tips
  • Try to use crypto for your payments directly without the need of p2p with this service
  • Get RedotPay Physical Card for cash withdrawals from ATM directly
  • Avoid P2P and do OTC deal through Crypto Awaz Discord (DVA)

User Experience of Account Ban after P2P

The text below has been extracted from a post tagged as guide in “Legal Aspects” on Cryptocurrency Pakistan Facebook Group also go through latest relevant posts.

These days this issue is very common that when we sell crypto to a p2p buyer our bank accounts get blocked or the received payments are blocked. I also faced this issue last month but got it resolved within 1 month.

Keep in mind there is no FIA involved in this matter, only p2p counter party cheats with you and they call their banks to block the sent amount after receiving USDT. When FIA gets involved is shared in the end.

All you have to do is be careful in this regards and avoid third party payments. Moreover must take mobile number and CNIC of buyer before releasing assets.

If your account gets block no need to worry about that and simply put pressure on your bank to activate your account. If bank delays unnecessarily give them a written notice to activate the account or payment. In written notice mention to the bank that you will take legal action against bank if issue is not resolved shortly.

No payment can be reversed if you have received them in your bank account and scammers got nothing in the end. They just claim to the bank that someone hacked their account and withdraw the amount. So all p2p traders need to be careful in this regard.

Keep in mind FIA is not involved to trace your bank transactions. They only get involved in fraud cases when someone makes a complaint with them with valid prove or if the merchant is flagged in money laundering cases.

Bank Account Blocked, Now What ?

While I strongly recommend reading the linked posts above, as they provide real life context on the topic. Some actions you can take if your account got banned based on user experience is summed up below :

1. Appeal Merchant : Appeal to Binance and report the merchant you dealt with. Tell them that after the deal your bank account got banned. The merchant will say that his account also got banned/blocked but it does not matter as you dealt with him and he is responsible. Reporting the merchant will ensure that he also take interest in getting your issue resolved during these Chain Bank Disputes.

3. Lock Disputed Amount : Visit your bank branch and ask them the reason for blocking the account and request them to first unblock the account and only lock the disputed amount rather then blocking the complete account.

4. Share Written Complaint : Ask your Bank manager to share the complaint / issue in writing and share details of user who initiated the dispute in writing. You will need to share this evidence with Binance as they ask for written dispute details.

5. Merchant to Give Written Statement : Request the merchant you dealt with to give a written statement to your bank , he should send it through post and also share it with you. The written statement should say that He (merchant) sent the amount on his own accord in exchange of goods.

6. Justify Payment to Bank : The Bank will ask you to justify the payment and ask details about the payment – that why this amount was transacted. There is a difference of opinion as found from user feedback, some say to share truth and tell them it’s a P2P trade while others say while they did tell the actual reason (P2P trade) that resulted in trouble and while some got away when they shared a bogus details like selling mobile etc. You may go through the comments on above linked posts or even get legal advice before proceeding here.

Read if FIA Notice Received after Crypto P2P Payment

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