06.04.2026 16:24
The global cryptocurrency exchange KCEX seized a Turkish user's crypto assets worth approximately $19,000 on the grounds of a "risk control review." KCEX customer service informed the Turkish user, whose assets have been frozen for 25 days, that the process would be extended until May, and then June 2026. Legal recourse against KCEX, which does not have a SPK license in Turkey, is effectively closed. Here are the details…
The agenda of the Turkish crypto community revolves around the seizure of a Turkish crypto user's assets worth approximately $19,000, or about 870,000 Turkish lira, by KCEX. The user, who stated that they have been unable to access their assets for 25 days, shared their experiences on social media, seeking public support.
THEY ARE HIDING BEHIND THE EXCUSE OF RISK CONTROL
The affected user also shared their correspondence with the KCEX support team. In the first email dated March 18, the KCEX support unit reported that abnormal activity was detected in the account, and therefore, the withdrawal permission was temporarily suspended, stating that the risk control assessment process could last until May 13, 2026. In the second email dated March 19, the duration was updated again. This time, it was reported that the risk control assessment process was extended until June 13, 2026. It was stated that it would not be possible to complete the review before the specified date, and the user would be informed when the process was completed. Experts indicate that a risk control review cannot last for long periods like 2-3 months, and that exchanges are hiding behind the excuse of risk control to block withdrawals.
RISK CONTROL HAS TURNED INTO SYSTEMATIC FRAUD
According to a report published on FastBull, the crypto exchange KCEX has repeatedly frozen the account of a user who profited from futures trading under the pretext of "risk control review," extending the duration multiple times.
In an incident that occurred last year, KCEX first extended the review period from August 23 to August 31, and then to September 14. In the final stage, it deleted the balance in the account on the grounds of abnormal activity and permanently closed the account. The report from FastBull noted that this was not the first complaint directed at KCEX, and that customer funds had been seized in the past using similar methods. KCEX, which does not hold any crypto license, is accused of systematic fraud.
KCEX IS OPERATING UNLICENSED IN TURKEY
Based in Seychelles, KCEX does not hold any license from the Capital Markets Board (CMB) in Turkey. The Law No. 7518, which came into effect in July 2024, requires all crypto platforms serving Turkish users to obtain a CMB license, while KCEX continues its operations with a Turkish interface without fulfilling this obligation. Additionally, KCEX does not implement KYC (Know Your Customer) requirements. Users can only open an account with an email address. This structure also contradicts international anti-money laundering standards that require identity verification and transaction record-keeping. Furthermore, KCEX is noted as one of the exchanges that faced access restrictions in Turkey in December 2024 due to operating without a license from the Capital Markets Board (CMB).
TRADING ON UNLICENSED EXCHANGES IS LEGALLY RISKY
The experienced grievances highlight the legal void created by unlicensed crypto platforms for Turkish users once again. Experts emphasize that if a similar issue occurred on a CMB-licensed exchange, the user could directly file a complaint with the CMB and benefit from legal protection mechanisms, whereas all these avenues are effectively closed on an unlicensed and foreign-based platform like KCEX.
Experts state that initiating legal proceedings against an unlicensed platform registered in foreign countries from Turkey is extremely difficult, and that an effective sanction mechanism cannot be implemented against practices such as fund blocking or account freezing. They remind that the first rule for safe crypto trading is to prefer CMB-licensed platforms, noting that such grievances have now become not only an individual but a systemic problem.