Nils Silinevics
Partner · AML & Crypto Compliance · Former FIU Investigator
You've received a formal request for Source of Funds documentation on FixedFloat. FixedFloat is a non-custodial swap service based in distributed (no single HQ), regulated under varies by user jurisdiction. Unlike traditional exchanges, FixedFloat can hold your funds during AML checks even though you never created an account. The service uses Crystal Blockchain for transaction screening. FixedFloat holds transactions when Crystal Blockchain flags source addresses with high risk scores, requiring source-of-funds proof before releasing funds. You receive an email or in-platform notification asking you to prove where your cryptocurrency came from. The request may include demands for bank statements, pay slips, tax returns, business records, sale contracts, mining proof, or inheritance documents — depending on how you acquired your crypto.
FixedFloat holds transactions when Crystal Blockchain flags source addresses with high risk scores, requiring source-of-funds proof before releasing funds. FixedFloat suffered a major hack in 2024 that compromised their operations and eroded user trust. The hack also affected their compliance processes — they became more aggressive in holding transactions, partly to compensate for the hack losses and partly because their compliance infrastructure was disrupted. This background matters because it shapes how FixedFloat handles compliance — and how we approach resolving your case.
The compliance framework: FixedFloat operates under varies by user jurisdiction, overseen by unclear (no single jurisdiction). Their compliance infrastructure uses Crystal Blockchain for blockchain analytics and manual for identity verification. FixedFloat is known for fixed-rate and floating-rate crypto swaps, Lightning Network support, serving traders who want predictable swap rates and Lightning Network users — and their compliance team is calibrated to flag deviations from typical user behavior in that segment.
What triggers source of funds request on FixedFloat:
Real case — post-hack paranoia: After the 2024 hack, a user's ongoing swap on FixedFloat was held indefinitely. FixedFloat's support — already disrupted by the hack — didn't respond for 3 weeks. The user's 1.2 BTC was stuck. We submitted a legal demand citing consumer protection obligations and the fact that holding user funds indefinitely without explanation constitutes conversion (unlawful detention of property). FixedFloat released the funds within 5 days of receiving the legal letter.
What FixedFloat requires to resolve this: Depending on the trigger, FixedFloat may ask for government-issued photo ID (verified through manual), proof of address (utility bill or bank statement within 3 months), AML compliance review (exchange statements, bank records, payslips, tax returns, or business documents), detailed transaction explanations with on-chain evidence, and in some cases a video verification interview. The challenge: FixedFloat rarely tells you which specific trigger caused the source of funds request, so you're guessing at what documentation to provide — and each rejected submission makes the next one harder.
Our approach is specific to FixedFloat: FixedFloat's post-hack compliance posture is defensive and uncommunicative. Their distributed structure (no clear HQ) makes regulatory escalation harder — there's no single regulator to complain to. We use legal pressure focused on the conversion claim (unlawful detention of property) rather than regulatory complaints. FixedFloat's lack of clear jurisdiction actually works in our favor — they can't invoke a specific regulatory framework to justify indefinite holding.
Source of Funds Request on FixedFloat — our strategy: We prepare a structured Source of Funds package that traces the origin of your funds through every layer: from fiat acquisition to crypto purchase to transfer to the platform. Each step is documented with primary evidence and a cover letter explaining the compliance context.
The submission that matters: Instead of submitting through FixedFloat's standard support channels (where you'll get automated responses or generic template replies), we prepare a professional legal submission — a structured compliance package with a cover letter from a Swiss law firm citing unclear (no single jurisdiction) obligations and varies by user jurisdiction. FixedFloat's compliance team processes legal submissions differently from regular user tickets — they're assigned to senior compliance officers, not support agents, and they bypass the automated response loop that delays most cases by weeks.
When standard compliance isn't enough: Some situations fall outside the normal compliance flow — inherited crypto holdings, accounts registered under another person's name, unprovable source of funds through conventional documentation, or cross-jurisdictional complications where your residence, the exchange's jurisdiction, and the fiat banking path all differ. If that sounds like your case, our complex cases practice handles scenarios that other firms decline.
Further reading: our guide on how to prove source of funds for crypto transactions covers the documentation and legal strategy in more depth.
We trace the origin of your funds through every layer: fiat acquisition → crypto purchase → transfer to {p_name}. {p_name}'s compliance team needs a clear chain — we build it with primary evidence at each step.
We prepare a structured Source of Funds package: bank statements showing fiat origin, exchange purchase records, on-chain transaction history, and a narrative flowchart. Each layer is documented with timestamps and transaction hashes.
We submit the package through {p_name}'s compliance team — not the standard support queue. Our cover letter references {aml_law} and explains the legitimate origin of every transaction in question.
{p_name} accepts the Source of Funds documentation and releases the hold. We confirm your withdrawal and trading functions are fully restored and advise on record-keeping for future {p_name} transactions.
The hack disrupted FixedFloat's operations, including their compliance and support teams. If your swap was held during or after the hack, response times are significantly longer than pre-hack. FixedFloat has not been transparent about the hack's full impact, which makes resolution harder. We use legal pressure (specifically, a demand for release of property) to force FixedFloat to process held transactions, regardless of their operational disruptions.
FixedFloat operates without a publicly disclosed headquarters, which creates regulatory ambiguity. This is both a problem and an advantage: there's no single regulator to complain to, but FixedFloat also can't invoke a specific regulatory framework to justify indefinite fund holding. We use general legal principles (conversion, unjust enrichment) rather than specific regulatory complaints.
Acceptable documentation depends on how you acquired your crypto. For earnings: payslips, employment contracts, tax returns. For trading profits: exchange statements showing purchase history. For business income: company registration, audited financials, invoices. For inheritance: death certificate, will, estate distribution documents. For mining: hardware receipts, mining pool records, electricity bills. The compliance team looks for a clear, documented chain from fiat origin to the current crypto balance.
DeFi yields, staking rewards, and liquidity pool returns are legitimate sources of funds — but they're harder to document than exchange purchases. We prepare on-chain evidence: transaction hashes, smart contract interactions, staking pool records, and yield farming positions. The key is showing that your DeFi activity was conducted with funds that themselves have a clear origin.
Yes. Under AML regulations applicable to the platform's jurisdiction, platforms are legally obligated to obtain Source of Funds for high-risk or high-value transactions. Failure to provide adequate documentation gives the platform the right — and in many cases the legal obligation — to close your account and potentially report you to financial authorities.
Tell us what source-of-funds documentation FixedFloat requested and your situation. We respond within 6 hours.