Yeah I have heard a few months back that someone's bank account got freezed due to a crypto related bank transfer.
I have always imagined what if I get into such a situation and had myself prepared for that already.
What I did was to create a bank account just for crypto related transfers and had my main account away from such transfers.
When I receive the amount from someone I transfer it immediately to my main account.
So even if my account gets freezed it will only be my secondary account that gets freezed while my main account remains intact.
So far things are going smooth and I have never got my account freezed
Still officials can find those bank account belongs to who and if it is owned by the same individual then you are still under the risk of getting frozen and after the Aadhar implementation the tracking becomes more easier to them.
That's exactly where you are wrong. Yes, officials do have the ability to track an individual but
they don't track just any individual for crypto transactions but if the person is involved with some kind of illicit activities such as selling drugs, money laundering, scamming, fraud only then they track the person and freeze all his accounts.
The other thing where banks freeze the accounts is when some particular bank is against crypto only then they freeze the account and in such case only the particular bank account gets freezed. Not the other bank accounts because they are not under the same bank. This is why it is important for us to open bank accounts in DIFFERENT banks.
Banks simply don't freeze the account just because it involved in the crypto related transaction since there is no restrictions now in India against crypto currencies.So you need to assume that you account connected to somewhat illicit activities as you mentioned above with or without knowledge of you.
Example:
Someone hacked a bank account,
Create an account on localbitcoin with fake ID and mobile number (because its easier to get in India)
Buy bitcoin by responding to different ads on LBC
Now hacker still being anonymous but laundered the hacked money into bitcoin
Finally the trader of LBC will be accused of hacking that bank account.
Is it clear now, why people's bank accounts are locked?