Unfreezing Capital: How we saved a Cross-Border E-Commerce Business from a "Game Over" Scenario

I am starting the new year with a major victory. We successfully unfroze the capital accounts of a Chinese cross-border e-commerce seller facing a crisis that nearly shut them down.

The Situation: A fitness equipment seller, which used Amazon as an online platform, was hit with two "personal injury" claims in the US. The result? Amazon froze two accounts containing hundreds of thousands of dollars. The seller was in a panic—they didn't know if the claimants were real, how to navigate US courts, or how to interpret and respond to the platform's aggressive legal notices.

The Mistake: By the time I was brought in (May 2025), it was already late. Because the seller hadn't responded promptly to the initial notices, the platform had already hired its own lawyers to handle the claims—charging the legal fees directly to the seller's frozen funds.

The Turnaround: My role became damage control ("mending the fence after some lambs are gone" in Chinese). We focused on three things:

1. Deciding whether to replace the counsel.

2. Bridging the gap between the Chinese seller and American attorneys to provide favorable evidence.

3. Helping the Chinese seller make strategic decisions to settle the dispute till the release of the frozen funds.

The Outcome: By the end of 2025, the accounts were unfrozen. While the seller had to pay settlements and legal fees, they retained their capital accounts, saved their business, and can continue operating in the US market.

The Critical Lesson for Sellers: If you receive an email from Amazon stating, "We request that you assume responsibility for handling, defending and resolving this claim," do not ignore it.

"Assuming responsibility" does not mean admitting guilt. It means you are taking control of the dispute resolution. If you fail to respond, the platform will freeze your capital accounts and use your money to investigate and resolve the claim without your input.

Early intervention prevents freezing. Don't wait until your funds are locked to seek professional help. 

If you need help for similar cases, please reach out to info@azhonglaw.com