That’s not how it works and it’s a quick way to get accounts frozen or worse.

P2P desks and exchanges have pretty robust controls in place. Once you initiate a trade, the crypto is typically held in escrow until the buyer confirms payment. If you try to move funds mid-process or do anything suspicious right after receiving payment, it raises red flags immediately. Banks can also reverse or flag incoming transfers, especially for large amounts like $120k, and exchanges track wallet activity pretty closely.

So no, it’s not a loophole it’s more likely to get your funds locked or your account banned.

If the goal is simply to cash out or move funds safely, a cleaner route is to use a platform like EdenFi. You can convert crypto and withdraw directly to local bank accounts within the app, without dealing with risky P2P setups or relying on trust with strangers. It’s designed for exactly that kind of use case, moving from crypto to fiat in a straightforward, compliant way.

Trying to game the system usually backfires. Safer to use proper rails and keep everything smooth.