Deposit Withdrawal Freeze

Definition ∞ A deposit withdrawal freeze is a temporary suspension of a user’s ability to deposit or withdraw funds from a cryptocurrency exchange or decentralized finance platform. This action is typically implemented during security incidents, system upgrades, or regulatory compliance reviews. While intended to safeguard assets, such freezes can cause user concern and liquidity issues.
Context ∞ Deposit withdrawal freezes frequently appear in cryptocurrency news, often indicating underlying operational or security challenges at a platform. These events underscore the custodial risks linked with centralized exchanges and highlight the importance of understanding a platform’s policies. Decentralized alternatives often promote continuous access to funds, aiming to mitigate this specific risk.