What's the deal with crypto exchange froze my withdrawal?

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Illustrative scenario prepared by my practice.
For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.
Hypothetical question

Tbh i'm in a difficult situation and trying to figure out my next steps.

crypto exchange froze my withdrawal. I've been dealing with this for about 15 weeks now and the situation isn't improving.

The amount being held/disputed is approximately $5,157. I have tried contacting their legal department 9 times with no resolution.

Am I overthinking this or is this a real legal issue worth pursuing?

Illustrative response

This is why I just use a CEX now. DeFi tax headaches aren't worth it for me personally.

Illustrative response

This is why I just use a CEX now. DeFi tax headaches aren't worth it for me personally.