Why Cryptocurrency Exchanges Freeze User Funds?

Cryptocurrency exchanges may freeze user funds for several reasons, including but not limited to the following: Compliance with government regulations or laws: Exchanges may be required by law enforcement agencies or regulatory bodies to freeze certain accounts as part of an investigation or for compliance with anti-money laundering (AML) or know-your-customer (KYC) regulations. Suspicious activity: Exchanges may freeze an account if they detect suspicious or fraudulent activity, such as attempted hacking or money laundering. High-risk countries: Some exchanges may freeze…