The main issue lies in the freezing of user funds when using the built-in swap function in the non-custodial Exodus wallet, which routes transactions through a third-party service — N.Exchange. The exchange unreasonably delays funds, demands impossible KYC/AML conditions, and ignores user requests.

The Exodus wallet integrates N.Exchange as a backend for asset swaps but does not notify users of this directly.

• According to user bvg96634, before making a swap, Exodus does not name the specific exchange nor allow the user to accept the third party's terms. The user only finds out about the involvement of N.Exchange after their funds are frozen.
• According to user Rikafip, other wallets (such as Ledger Live) explicitly name their partners, which calls into question Exodus's intentions in hiding information about N.Exchange, which has already been involved in scandals in the past.
• According to user albon, Exodus's Terms of Service (ToS) contain clauses that relieve them of responsibility for third-party APIs; however, this does not justify integrating a service with a questionable reputation.

After a swap is frozen, N.Exchange starts demanding that users pass KYC and provide unjustified personal data.

• According to user bvg96634, after 2.7 BTC was frozen, the exchange demanded KYC verification, and then requested screenshots of the wallets of counterparties with whom the user had made transactions 2 to 6 months prior. The actual counterparties refused to reveal their identities.
• According to user Cenzoooo, his $5,000 transaction was frozen. He was forced to undergo KYC against his will and prove the source of funds to get his money back.
• According to user Meeroh1, the funds were stuck for 16 days despite providing a complete set of documents, including a car sale receipt.

N.Exchange systematically ignores user requests, holding their funds for months.

• According to user CMcpherren (whose situation was actively discussed in the thread), after passing KYC and an interview, the exchange completely ignored him in chat and via email for 8 months. When the order number was mentioned, operators would simply leave the chat.
• According to user Nexchange.co.uk (the official exchange representative on the forum), the delays are caused by AML checks and interaction with law enforcement. However, according to users Coyster and acroman08, the representative merely copies and pastes template replies and does not provide real updates on the cases.

The partnership between Exodus and N.Exchange poses serious risks to user funds. Exodus does not warn about the actual executor of the transactions and refuses to intervene in disputes, while N.Exchange uses KYC/AML procedures as a pretext to hold cryptocurrency for periods ranging from a few weeks to 8 or more months. Users are strongly advised to avoid the built-in swap functions in the Exodus wallet and use decentralized exchanges (DEXs).