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For fix-price contracts, it should be written Funded for the current milestone.
For the hourly, just Payment Method Verified
I don't know about fix.
For the hourly, unfortunately, no way. Payment Method Verified only means that the client has verified his bank card or paypal there. This does not mean that he has money reserved. It can easily turn out that you have done the work, the upwork starts to withdraw money from the client, and he has zero balance.
About blocking the account of a friend - some kind of cat lamp story. The contract is placed on hold, the account is not blocked in such cases.
It will be noted in the milestone and usually the letter comes with the reservation of money
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