The first thing that you should do is file an RTI application seeking details of the said occurrence. also ask why a mandatorily required notice was not sent to you. i will tell you the next steps then. i had lien removed from a number of my clients' bank accounts.
Legal advice on lien marked on bank account due to Binance p2p transaction – Layer 2 involvement and cybercrime case
Dear Lawyer, I need legal guidance regarding a legitimate Binance P2P transaction that has now been linked to a cyber fraud case in India. I am an NRI residing outside India and currently unable to visit the police station or cyber crime office in Uttar Pradesh to resolve the issue in person. Scenario: On 8th January 2025, I sold USDT worth INR 50,000/- via Binance Peer-to-Peer (P2P) to a verified buyer who transferred the amount to my Axis Bank account. I conducted due diligence by verifying the buyer’s identity through Binance-provided details and KYC documents, ensuring it was *not a third-party transaction*. After confirming that the sender’s name matched the buyer’s name on Binance, I released the USDT via Binance’s escrow mechanism. I later received an email from Axis Bank’s Cyber Cell stating that a lien (not a freeze) has been placed on the said transaction of 50k on my bank account as per instructions from the Cyber Crime Police of Uttar Pradesh, alleging that the transferred funds were linked to a fraud case. As a NCRP case was filled by the victim (third person) who was scammed by the buyer who purchased USDT from me. I am now considered a Layer 2 recipient in this case since the fraudster (who tok INR from Victim and sent me that INR to buy Crypto USDT) used my Binance P2P order to liquidate stolen funds into crypto. Current Status & Supporting Evidence: I have all supporting proof, including: Digitally signed Binance order receipts for the transaction. Bank statements showing the transaction. KYC details of the buyer (Aadhar/Pan) Details of Binance’s legal portal for law enforcement inquiries Despite my attempts to contact the investigating officer, the provided contact number is out of coverage, and I am unable to get any clarification on the next steps. My Concerns & Queries: 1. Am I legally liable for the fraud committed by the buyer who used my Binance P2P order to buy USDT? 2. Can the police demand that I compensate the victim for their loss, even though I was not involved in the fraud. 3. Can i be arrested? I have just emailed the cyber police with the proofs & a video stmt - but unable to contact them on call as their number is un-reachable (I got their email id & number from NCRP notice sent by my Bank). 4. How do I respond to an upcoming 91/102 Cr.P.C. notice if issued by the police? 5. Since I am an NRI and unable to appear in person, how else can formally communicate my response to the police? 6. What steps can I take to avoid getting dragged into a legal case or unnecessary proceedings? 7. The NCRP case was lodged in UP and my home state in india is Gujarat. I appreciate your time and expertise in this matter. My primary concern is to resolve this quickly without getting entangled in a legal battle, as I have acted in good faith and followed all necessary precautions while trading. Looking forward to your advice. Best Regards, Anuj Baid
Asked 10 months ago in Criminal Law
Religion: Hindu
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15 Answers
- As the fraudster used your binance order to buy usdt, you are prima facie in collusion with the main accused. During investigation you can establish your innocence but you need to cooperate with investigation.
- All the accounts of fraudster will be freezed and victim will compensated from his accounts.
- All offence under cyber fraud are bailable. On appearance you will be released on execution of personal bond.
- Any summons under Section 91 are deemed to be complied if the property/document is produced without attending the police station.
- To avoid any proceedings under Section 102, you need appear and convince the police of you innocence.
- You need to appear in u.p. where the case is registered.
- You can approach High Court seeking to quash FIR against you or at least as alternative grant anticipatory bail to you.
1) you are not laible to compensate victim for the loss
2) fraudster is liable
3) you can send reply by speed post
4) no FIR has been filed against you
Legal Advice on Binance P2P and Bank Account Lien:
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Legal Liability: You are not liable for the buyer’s fraud as you acted in good faith, verified the buyer’s identity, and used Binance’s escrow system. Provide evidence of due diligence.
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Compensation Demand: Police cannot demand compensation unless you are proven complicit or negligent.
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Risk of Arrest: Arrest is unlikely if you cooperate. Continue submitting evidence and maintain communication with authorities.
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Responding to Notices: For Section 91/102 Cr.P.C. notices, submit required documents via a lawyer. Request virtual communication if unable to appear in person.
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NRI Communication: Appoint a lawyer in Uttar Pradesh, send notarized affidavits, and request Binance to assist with law enforcement inquiries.
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Avoiding Legal Issues: Preserve all records, engage a local lawyer, and file a representation to release the lien. Escalate the matter if the investigating officer is unreachable.
For detailed, personalized advice, consider a phone consultancy. Hope you find the information helpful. You are free to contact me for further discussion. If you could spare two minutes of your time to write a review, it would be greatly appreciated. Thank you. Shubham Goyal.
after going through the facts i do not think you are legally liable
in the event you get any summons from police you just need to co-operate and inform how the entire transaction took place
the seller would never know that the buyer's funds are proceeds of crime
moreover the transaction occurred through banking channels
i think it is not correct on your bank's part to mark a lien on the sale proceeds credited to your bank account
i think you need to relax
you may be a layer 2 recipient, but that does not of itself make you legally liable for the wrong that has happened to the victim at the hands of your buyer, unless it is proved otherwise
Dear Client,
As your transaction was bonafide, carried out in good faith, and madewith due diligence, you cannot be held criminally liable for the fraud perpetrated by the buyer. However, since the Cyber Crime Police of Uttar Pradesh has traced your account to the case, they might treat you as a witness or an intermediary. This is a lien placed on your account. While the police cannot demand money from you, they may try to get it back by coercing you to pay it. You are notliable in the eyes of the law unless you can be shown to have had knowledge about the fraud being perpetrated.
You have nothing to fear regardingbeing arrested. Still, you may want to get a lawyer in UP to monitor the case and to formally respond. If the police send a notice, you should hand over documents, such as the transaction records of Binance, bank statements, and KYC details of thebuyer. Under 106 BNSS freezing of accounts, your attorney should file objections and present this before the magistrate to have the lien removed. Since you are an NRI, you can formally communicate through a notarized affidavit, email correspondence, and video statements, requesting virtual interaction instead of in-person visits.
To avoid further complications, ensure proper legal representation, submit all necessary evidence to the police, and request Binance's legal support. If the lien is not lifted, escalate the matter to the Banking Ombudsman or file a case in the jurisdictional court. Since the case was filed in UP, you can also seeka transfer of jurisdiction to Gujarat under Section 446 of BNSS if required. Do not settle the case without alawyer as this may be construed as an admission of guilt. Your main defense is that you were a bonafide trader andhad no hand in fraudulent activities. Taking these steps in time will help resolve the matter without unnecessary legal entanglements.
In this circumstances you are not liable for any fraud but if you get any call or notice from police take legal advice first. You need to apply to the court for removing the lien
1. Whether knowingly or unknowingly you were involved into this transaction hence you are liable to explain your role as a statement to the police investigating this crime.
2. If you have not been named as one of the fraudster but just this transaction was done by the other party who cheated the victim, you may explain it in the form of an affidavit to enable you to convince police to not to penalise you.
3. There is necessity to be panicked over the development.
4. If you have been served with notice under section 91 cr.p.c. then you are required to comply with it.
5. You can send the hard copy of the evidences in your possession to the police by post
6. You wait for the next communication from police in this regard to take further steps.
7. The NCRP is a centralized platform for registering cybercrime complaints. Complaints are automatically assigned to the relevant state or union territory.
1. No
2. You can send a letter to the cyber cell after mentioning the details
3. You can sent the said reply through post and email , and forward one copy to the bank
4. Send Reply
5. You can engage a lawyer to appear on your behalf
6. If no response from the cyber cell after getting your reply then approach the Court to get anticipatory bail
7. You should approach the UP cyber office and you may also contact the head office of cyber cell in New Delhi.
So I had consulted 2 layers who allegedly specialize in handling such cases, both are saying that I will have to give back the money as in such cases there are no laws protecting the money received from fraudster in Layer 2 and only then the police will give the NOC to the bank. It is astonishing that there is no way to fight for my money because as per the police Binance p2p is not legal (neither it is illegal (grey area)), and so I will have to return the fraudulent trail - money received in my account and also bear loss of USDT crypto that i had sold. I have 3 liens on my account from different cyber polices for 3 different transactions (UP/Telangana/TN), is there a way I can file a writ petition in the crminal court in gujarat against all these 3 diff Cyber Police and try to get the NOC? Any more suggestion in order for me to completely recover my money would be very helpful! PS- There are 1000s of cases daily of people getting marked lien on their account due to either Binance P2P or gaming websites withdrawals. Today's judges may not be aware of P2P etc and thus are not ruling in the favour of the people who are trapped in the money trail of Layers 2-3-4-5...20.
Asked 9 months ago
If you are sure that your case is genuine and is not involved in any fraudulent activity as alleged by the police, you can collect the details of all the crimes in different states and engage an experienced lawyer practising in Gujarat high court and file a petition to quash all the charges against you in different states.
You can file a quash petition in the High Court that has jurisdiction over the matter, even if the crimes took place in multiple states. The High Court can quash criminal proceedings under Section 482 of the Criminal Procedure Code (Cr. P.C.) or under Article 226 of the Constitution.
The high court can quash :
- To prevent the misuse of the law
- To prevent abuse of the court's process
- To secure justice
- When the FIR is registered with an ulterior motive.
You will have to file 3 separate petition in various HC to get NOC
Gujarat HC would not have jurisdiction to entertain cases in police station in other states
You need to first approach concerned court for removal of lien and then after exhausting alternative remedies you can go for writ. Directly filing writ may have issues of not admitting on ground of availability of alternative remedies
Based on my understanding, here are some key points to consider:
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Legal Liability & Refund:
Even if you acted in good faith by following Binance’s procedures, the authorities may treat the funds as part of a fraudulent trail if they determine the buyer’s funds were stolen. In such cases, they might require you to refund the money to clear the lien. -
Challenging the Liens:
Filing a writ petition in a High Court against the actions of the cyber police is extremely challenging. Courts generally give wide discretion to investigative authorities in such matters. Moreover, since your case involves three different state agencies (UP, Telangana, TN), a single writ in Gujarat might not address all the issues. You may have to approach each jurisdiction separately or file individual writ petitions. -
Due Diligence Evidence:
Your strongest argument is the evidence of due diligence: digital receipts, bank statements, and KYC verification from Binance. If you can clearly demonstrate that you had no knowledge of any fraudulent intent, you might persuade the court to direct a review of the lien orders. -
Alternative Avenues:
Instead of a writ petition, you could consider a targeted application for cancellation or modification of the lien with the concerned police or bank authorities. Engaging a lawyer who specializes in cybercrime and cryptocurrency-related cases could help negotiate with the enforcement agencies for a NOC. -
Practical Outcome:
Even if the court sympathizes with your position, it may not automatically return the funds unless it finds that the funds were mistakenly attached. In many such cases, the resolution may involve a compromise or phased refund process rather than full recovery.
Given the complex nature of cybercrime cases involving crypto transactions and multiple state jurisdictions, it’s crucial to work closely with an experienced lawyer who can assess the specific facts and advise on the most effective strategy.
- Yes, you can approach the High Court for getting relief.