The email says your exchange is on hold and asks you to “provide proof of the source of funds”. It sounds like an accusation, but it is a standard request, and it is written into most services’ rules. Changelly’s AML policy even lists what it accepts:
“Enhanced Due Diligence implies checking the source of funds. Among the proofs accepted for verification are the following: exchange accounts with the history of trading, receipts from cryptocurrency sellers, or proofs of mining activity.”
Changelly, AML/KYC policy (source).
Short answer: the service wants to see how the coins you sent got to you. Answer through the official channel with a short timeline — where the coins came from, when, and to which address — backed by statements, receipts or transaction hashes. To avoid the request next time, send from accounts in your name and keep your records.
What is source of funds, and why are they asking?
Source of funds is the origin of the particular coins in this transaction. Source of wealth is broader: how you earned your money in general. Some policies ask for both. SimpleSwap’s, for example: “the documents and information about client’s source of funds, source of wealth and expected transactions specified by SimpleSwap may be requested.”
The request usually follows one of three things:
- A screening flag. The deposit’s history touches an address that a risk provider rates as risky.
- A large amount. Bigger transfers get more questions under most AML rules.
- A pattern. Many deposits in a short time, or behaviour the service’s rules call unusual.
ChangeNOW describes the request this way: it will ask “to provide a scan of your ID document valid in your country, as well as some additional information on the funds’ origin.” Exolix: it “has the right to ask users about the source of funds involved in a particular transaction.”
What should you send?
Think of it as a short story with evidence for each step: “I bought X on exchange A, withdrew it to my wallet B, and sent it to you.”
| Where the coins came from | What usually works as proof |
|---|---|
| Bought on an exchange | Account statement or trade history showing the purchase, plus the withdrawal with its transaction hash to the address you sent from |
| Received as payment | Invoice or contract, and the incoming transaction hash |
| Bought from a person (P2P) | Receipt or chat record of the deal, the payment you made, and the incoming transaction |
| Mining or staking | Payout history from the pool or platform |
| Moved between your own wallets | Transaction hashes linking each hop back to one of the sources above |
Tips that make the review shorter:
- Lead with a one-paragraph summary, then attach documents in the same order.
- Match amounts and dates to the transaction you sent. Mark the relevant lines in long statements.
- Use original exports (PDF or CSV from the exchange) where possible, not only cropped screenshots.
- Answer exactly what was asked, in one email, and keep a copy.
- Ask for a timeline and who will contact you next.
What not to do
- Never send your recovery phrase or private keys. No review needs them. Anyone asking is trying to steal your wallet.
- Never pay an “unlock fee” or a “verification deposit”. Legitimate services don’t ask you to send more coins to release a swap.
- Don’t reply to strangers. Use only the email on the service’s website or order page. Scammers watch Reddit and Telegram for people in this situation.
- Don’t invent documents. A false document turns a delay into a refusal, and policies say so plainly.
How long does it take, and can you ask for a refund instead?
Policies differ, so read the one that applies to you. A few published examples:
- ChangeNOW: if a client refuses to provide documents, “the deposited funds are then refunded to the address (or addresses) the deposit was made from, subtracting the network fees, within 24 hours.”
- SimpleSwap: “refund requests are processed during up to 31 (thirty-one) calendar days.” When returning frozen funds, its terms add: “We impose an additional fee of 1% of the retuned amount to cover administrative expenses, with a minimum charge of $100.”
- FixedFloat: if funds look criminally related, the order “may be suspended in order to request details about the origin of the funds sent until the requested information is provided.”
If you are stuck, see our guide to swaps on hold for AML checks for the steps in order.
How to avoid source-of-funds requests next time
- Send from your own wallet, or from an exchange account in your name. Third-party accounts are a classic flag.
- Keep records as you go. Export exchange statements once a year; save invoices for crypto you are paid.
- Be careful with P2P coins from strangers. That is where tainted history most often comes from.
- Choose services that check before you send and say clearly what happens if a check fails.
How BayChange handles this
We never hold your funds, so we have nothing to put on hold while waiting for documents. Before we give you a deposit address, we check your receiving and refund addresses against sanctions lists and stablecoin issuers’ blocklists; if one matches, we don’t create the order and no money moves. After you send, the swap runs on a decentralized protocol that runs its own checks and may reject a deposit — a rejected deposit goes back to your refund address, minus network fees. Stablecoin issuers and authorities can still freeze funds, and we can’t override that.
You remain responsible for the lawful origin of the coins you swap. If they are yours and you know where they came from, a swap on BayChange takes minutes: no sign-up, no wallet connection needed, and the fee is shown before you send. Open the exchange.
