Crypto seller's whole bank account frozen for nearly three years over a buyer's cyber complaint
A Kadapa software professional sold 1,360 USDT, a dollar-linked cryptocurrency, to a buyer on a peer-to-peer platform in May 2023. After a cyber-fraud complaint against the buyer in Indore, police had the seller's entire bank account debit-frozen, though he was not named as an accused. On 29 July 2026 the High Court ordered the account unfrozen except for the Rs 26,600 in dispute.
This page records what the cited court, tribunal and government records say happened. Findings belong to the court or authority that made them; this register adds none of its own. Names of private individuals are withheld unless a naming gate clears them.
How we verify →Account ordered unfrozen on 29 July 2026, except for a lien on Rs 26,600.
What happened
The High Court recorded the seller's account that he accepted a request to buy 1,360 USDT at Rs 92.60 each and that on 26 May 2023 the buyer paid Rs 1,25,936 into his account at ICICI Bank, Kadapa.
A cyber-fraud complaint was later registered in Indore, Madhya Pradesh, against the purchaser. On 25 October 2023 the Indore Crime Branch emailed the bank instructing it to debit-freeze the seller's account, and the bank froze it.
Justice Ravi Cheemalapati found 'no material placed on record to show that the petitioner is an accused in any crime', and that the police communication showed the disputed transaction was only Rs 26,600. He directed the bank to 'mark lien only on the specific disputed amount while unfreezing the remainder of the account'.
What the High Court said
“However, there is no material placed on record to show that the petitioner is an accused in any crime or that the entire amount lying in the petitioner's bank account represents the proceeds of any alleged cyber fraud.”
W.P. No. 7582 of 2026, order dated 29 July 2026, para 6 — read the full text
Frozen for trading crypto
The seller's recorded act was an ordinary sale of cryptocurrency. The fraud complaint was against someone else, yet his whole account, and his access to his own money, was frozen for close to three years.
What we could not confirm
The freeze was ordered by police in Madhya Pradesh; the seller, his bank and the deciding court are in Andhra Pradesh. The order does not explain why the disputed amount (Rs 26,600) differs from the sale price (Rs 1,25,936), or give the Indore complaint number.