When you create an account on the platform, it enters a lifecycle consisting of well‑defined states that determine whether the account is operational and can transact. You should track these states to understand account readiness and to programmatically respond to changes (e.g., via webhooks or API responses).

How It Works

Account creation triggers the lifecycle — every account starts in the INACTIVE state.
The platform evaluates KYC verification and compliance requirements.
Based on verification outcomes, the account transitions to a final state (ACTIVE, BLOCKED, or remains INACTIVE).
Accounts can later enter a closure workflow, progressing to CLOSED.

Each status conveys whether the account can receive, hold, or send funds, and whether it requires action.

Account Statuses

Status	Description
INACTIVE	Account has been created but is not yet verified for KYC or compliance. No fund movements are permitted. This is the default state at creation when verification hasn’t yet succeeded.
ACTIVE	All required verification and compliance checks have passed (including KYC). The account is operational for sends, receives, and balance activity.
BLOCKED	The account cannot transact until remediation actions are taken. This may occur due to failed compliance checks (such as OFAC or CIP verification), risk or compliance review, or if the account enters a negative balance state.
CLOSURE_INITIATED	A temporary state when the account holder has requested closure. The system is completing pending transactions and preparing final balance transfers.
CLOSED	The account is permanently closed. All transactions are settled, and any remaining balance has been moved out.

Troubleshooting Account Status

Some account statuses require remediation or action before the account can become operational. You should monitor these statuses and guide users or system processes to resolve issues.

INACTIVE

Account has been created but is not yet operational. Typically occurs when KYC or compliance verification has not completed successfully.

Possible Causes & Steps to Resolve:

Reason	Remediation
KYC / customer verification pending	Check the customer’s verification status. Request missing documents or follow up on review if pending. Both OFAC and CIP status of the customer should be `Verified`
SPAA / account agreement not linked	Ensure the customer has submitted the required agreement and it has been processed.
Compliance documentation under review	If a customer submits wetsigned agreement and doesnt follow clickwrap e consent flow, then compliance review is triggered. Usually account is activated within a day, you should trigger follow-up if review is delayed.

Tip: Use Account webhooks to monitor status and customer webhooks to monitor verificationStatus. INACTIVE accounts should not be used for transactions until remediation is complete.

BLOCKED

Account has been restricted due to failed compliance checks, risk events, or operational issues. No transactions are allowed until the account is unblocked.

Possible Causes & Steps to Resolve:

Reason	Remediation
OFAC, CIP, or other compliance checks failed	Identify the specific failed check from the verification status. Resolve issues (e.g., update documentation, clear sanctions flags).
Suspicious activity or risk review	Reach out to customer support to know the reason.
Negative balance restrictions	Resolve negative balances by depositing funds, the risk block will be removed.

Tip: BLOCKED accounts are explicitly restricted. Unlike INACTIVE accounts, they may require manual intervention by compliance or risk teams.