Binance P2P Merchants Face Bank Account Freezes in India

In August 2026, some Indian Binance P2P merchants reported that their banks placed liens and froze their accounts weeks after they sold USDT via UPI or bank transfer and released escrowed funds. The incidents seem to be linked to incoming rupees later connected to prior cybercrime.

The users described bank liens, account freezes, and lengthy attempts to establish that they were simply counterparties in a legitimate crypto trade on the Reddit's r/CryptoIndia community.

A verified Binance P2P merchant posted in August 2026 that their bank placed a lien on their account weeks after they sold USDT and received payment through UPI. The user stated that the buyer was allegedly connected to a cybercrime committed before the transaction.