A Gate user says an Indian court approved transferring funds from a frozen account to a complainant in a crypto fraud case, raising questions about the exchange’s handling of an investigation.
The user, who identifies as keym, said they deposited 15 Bitcoin (BTC) to Gate on July 16, 2025, and the account was later frozen. Keym said Indian law enforcement emailed that the funds were connected to a crypto fraud investigation.
Keym said lawyers repeatedly disputed the connection and told authorities that no funds tied to the case had entered the account. Indian authorities maintained their position and brought the case to court, keym said.
Keym said Gate notified them on Nov. 12 that the court had approved transferring account funds to the complainant. The user did not specify how much the court approved for transfer.
Keym valued the account’s assets at more than $3 million when it was frozen and reported a current value of about $1.6 million. They also questioned Gate’s cooperation with the evidence request and why it provided their know-your-customer information to Indian authorities.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to [email protected].
