my cousin sold his bitcoin to a guy in Thailand and that person made direct payment to my cousins bank account in Singapore from his Thailand bank but now the bank in Singapore is asking my cousin to produce his income source and has freeze that transaction money in his account. my concern is does the bank have that authority to stop my cousin from taking money out from his account and give such reason or excuses ?
is there any legal solution ? is it possible to sue the bank ?
Just like what other posters have said, maybe something raised an alarm to the banks regarding the deposits that's why they have frozen yes. As far as I know they have the right to do it if anything suspicious regarding the originator or the receiver.
But I guess if you cooperate with banks and give them all the details then you can get back your money. No need to sue them, it will just complicate things. Talk to them and show proof that it's not a illegal or dirty money.
Of course, the limit alarm placed on the account must have been triggered as a result of the number of zeroes he must have received.
Take for example, in my country, I can only receive 25000 dollars in my domiciliary account per day and anything that makes me receive any amount more than that, the accounts has already been programmed to freeze the account temporarily especially if it is not a business account, so I have to proof the source of income by providing sales document, invoices of goods purchase and so on but in this case of Bitcoin, I really dont know if the bank will really recognize it since majority of them still frown at cryptocurrency.