How does freezing a crypto wallet differ from freezing a bank account?

Legally, they’re treated the same — the difference is how the blocked party is identified and how ownership is traced. OFAC increasingly adds specific cryptocurrency wallet addresses directly to the SDN List, identified through blockchain analytics rather than a bank account number or SWIFT code. Once an address is designated, U.S. persons and exchanges must block, not seize, any funds associated with it — the same obligation a bank has toward a frozen account under the 31 CFR § 501.603 reporting rules. The practical difference is tracing: bank funds move through a closed, auditable correspondent-banking system, while crypto funds can be commingled across wallets or routed through mixers before an exchange freezes them, so untangling a blocked wallet’s contents typically requires forensic blockchain analysis in addition to standard OFAC compliance review.