Treat localbitcoins like Craigslist.... always do face to face interactions otherwise.... go elsewhere for online pickups.
Topic: Beware of LocalBitcoins.com - page 6. (Read 14921 times)
pekv2: I expect you are just trolling since you know better than these two noobs.
No I am not trolling. Just want to avoid illegal activity thats all.
We are in great shape here. The various factions in the goobermint could spend years fighting amongst themselves just trying to figure out what Bitcoin is. We can use them against each other until they come up with a unified definition.
On top of all this, in view of most recent arrests in Florida, any seller on localbitcoins (especially high volume one) can potentially be arrested for a mere fact of trading. States define such activity as money transmitting, which in turn requires proper state license. The arrest mentioned above were made by undercover law enforcement agents posing as Bitcoin buyers. So, the next time you arrange for a meeting to sell bitcoins, you could be meeting with the police officer.
Well I guess that can be challenged now, since the IRS considers bitcoin to be property. Unless that has changed, I can't get in trouble for selling my TV at starbucks.
OP: You said you got ripped off. What payment method did you accept? Was it cold hard cash or some reversible form of fiat? If you accepted reversible funny money for your BTC who's fault is that?
BitBits: You go on to repeat the stupid "got arrested for selling Bitcoins" lie. The cops do not give one crap about people selling or buying BTC (the IRS is another matter).
What happened there is that the undercover cop repeatedly told the BTC sellers that they were going to use the BTC for illegal purposes. That is what they got arrested for - not selling BTC.
I use localbitcoins all the time. It is, by far, the best and safest way to buy and sell BTC. I have also met dozens and dozens of totally cool people with a shared interest/passion for Bitcoins.
pekv2: I expect you are just trolling since you know better than these two noobs.
BitBits: You go on to repeat the stupid "got arrested for selling Bitcoins" lie. The cops do not give one crap about people selling or buying BTC (the IRS is another matter).
What happened there is that the undercover cop repeatedly told the BTC sellers that they were going to use the BTC for illegal purposes. That is what they got arrested for - not selling BTC.
I use localbitcoins all the time. It is, by far, the best and safest way to buy and sell BTC. I have also met dozens and dozens of totally cool people with a shared interest/passion for Bitcoins.
pekv2: I expect you are just trolling since you know better than these two noobs.
On top of all this, in view of most recent arrests in Florida, any seller on localbitcoins (especially high volume one) can potentially be arrested for a mere fact of trading. States define such activity as money transmitting, which in turn requires proper state license. The arrest mentioned above were made by undercover law enforcement agents posing as Bitcoin buyers. So, the next time you arrange for a meeting to sell bitcoins, you could be meeting with the police officer.
I just removed my account. Thanks for the headsup. Not only is it illegal, they are a fruad and scam. I cannot prove it, but it is my opinion of them.
On top of all this, in view of most recent arrests in Florida, any seller on localbitcoins (especially high volume one) can potentially be arrested for a mere fact of trading. States define such activity as money transmitting, which in turn requires proper state license. The arrest mentioned above were made by undercover law enforcement agents posing as Bitcoin buyers. So, the next time you arrange for a meeting to sell bitcoins, you could be meeting with the police officer.
So I wanted to share with you all the problems with trading Bitcoin on LocalBitcoins.com
There are risks with any online trading, and when Bitcoins are involved - the inherent anonymity and irreversible transactions make it really easy for Bitcoin scammers to make an easy buck.
Localbitcoins.com does offer a Dispute process, and has certain security measures that try to make it safe for both buyers and sellers.
1. I.P. Address check - can be faked using a Proxy
2. Phone Number Verification - can be faked using a SMS servce
3. Real Name Required - can be faked using fraudulent ID
4. Trust Score - Scammers give each other trust scores and testimonials
5. Dispute is not possible after the Trade is completed
The #1 Problem with their site is the Escrow service - localbitcoins.com requires sellers of BTC to put their coins in Escrow - this is a huge F#&K%!G MISTAKE.
Users are not able to make a trade unless Bitcoins are held in Escrow, these coins are locked until the Trade completes - whereby the Seller can push a button to 'Release the Bitcoins' or the timer for completing the trade runs out (sometimes this is 2 hours or 12 hours depending on the user). If the trade is cancelled by the Buyer before either of these options, that is the 3rd and final way that Bitcoins can be unlocked from Escrow.
The intention of their Escrow system is for Sellers to prove they have the Bitcoins and they can release the coins once they receive the buyer's funds.
Here's the problem, localbitcoins.com is a vehicle for transacting Bitcoin but offers no protection or safety from scammers
- You are required to place Bitcoins in their Escrow System - but they don't allow you to cancel the trade
- Their Escrow System is not meant to protect the Seller of Bitcoins
- If you receive payment for Bitcoins, localbitcoins.com is not responsible for making sure it's legit
- Bitcoins released from their Escrow are not protected and good luck trying to dispute a scammer
These are my conclusions about the service after using it a couple times and going through the process of getting scammed on the site only to receive Zero Support in retrieving my stolen coins. Although they offered to block the User, it does little to prevent the scammer from creating a new account from a new IP Address.
My two cents: use cash for Bitcoins.
Avoid online payment systems altogether - it's the equivalent of printing out your BTC-e voucher and folding it into a paper plane on the hope that it ends up where its supposed to.
Say no to scammers.
There are risks with any online trading, and when Bitcoins are involved - the inherent anonymity and irreversible transactions make it really easy for Bitcoin scammers to make an easy buck.
Localbitcoins.com does offer a Dispute process, and has certain security measures that try to make it safe for both buyers and sellers.
1. I.P. Address check - can be faked using a Proxy
2. Phone Number Verification - can be faked using a SMS servce
3. Real Name Required - can be faked using fraudulent ID
4. Trust Score - Scammers give each other trust scores and testimonials
5. Dispute is not possible after the Trade is completed
The #1 Problem with their site is the Escrow service - localbitcoins.com requires sellers of BTC to put their coins in Escrow - this is a huge F#&K%!G MISTAKE.
Users are not able to make a trade unless Bitcoins are held in Escrow, these coins are locked until the Trade completes - whereby the Seller can push a button to 'Release the Bitcoins' or the timer for completing the trade runs out (sometimes this is 2 hours or 12 hours depending on the user). If the trade is cancelled by the Buyer before either of these options, that is the 3rd and final way that Bitcoins can be unlocked from Escrow.
The intention of their Escrow system is for Sellers to prove they have the Bitcoins and they can release the coins once they receive the buyer's funds.
Here's the problem, localbitcoins.com is a vehicle for transacting Bitcoin but offers no protection or safety from scammers
- You are required to place Bitcoins in their Escrow System - but they don't allow you to cancel the trade
- Their Escrow System is not meant to protect the Seller of Bitcoins
- If you receive payment for Bitcoins, localbitcoins.com is not responsible for making sure it's legit
- Bitcoins released from their Escrow are not protected and good luck trying to dispute a scammer
These are my conclusions about the service after using it a couple times and going through the process of getting scammed on the site only to receive Zero Support in retrieving my stolen coins. Although they offered to block the User, it does little to prevent the scammer from creating a new account from a new IP Address.
My two cents: use cash for Bitcoins.
Avoid online payment systems altogether - it's the equivalent of printing out your BTC-e voucher and folding it into a paper plane on the hope that it ends up where its supposed to.
Say no to scammers.
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