Exchange won't release bitcoins unless I verify identity. Advice appreciated.

DaveF

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Quote from: JeromeTash on December 05, 2021, 07:36:49 AM

Either do the KYC or accept to lose the $1,000. They are always going to refer to their Privacy policy and terms of service whenever you try to make an argument out of it.

Agreed, and keep in mind once you start going through lawyers, it can take years to get through the court system.
And if you are worried about your data being out there, or your privacy with BTC, remember all court stuff is public information. Your name and who you are brining to court will be out there forever.

-Dave

Potato Chips

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Pursuing a legal action doesn't look like a good idea cause stakes seems to be higher than the reward. It's possible to not hire a lawyer if you know what you're doing or have a lawyer who guides your for free or for cheaps but there would still be travel and living expenses if you're coming from another country...

You can try to put on a front that you're actually serious about pursuing a legal action. If that doesn't work, it's time for an ultimatum. Good luck on whatever you choose OP.

JeromeTash

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Quote from: I_savor_your_pets on December 05, 2021, 12:16:14 AM

Thanks so much for the replies. I've been following this thread and wanted to post an update:

Paxful told me I must use Jumio to verify my identity because Paxful lacks the capacity to verify user identity. I don't intend to hide my identify from Paxful, but I also don't want Jumio to keep my biometric data and potentially ask for more documents endlessly.

I've spoken to a friend's lawyer who is willing to help me verify my identify for Paxful and sue Paxful if Paxful insists I use Jumio to verify my identity. For now I'll hold off on suing/traveling due to covid. If anyone has anything to add, please feel free to chip in. Thanks.

Most websites or centralized exchanges I have come across use automated services like Jumio to process KYC data. Sorry about your situation but looks like you have only 2 choices here.

Either do the KYC or accept to lose the $1,000. They are always going to refer to their Privacy policy and terms of service whenever you try to make an argument out of it.

Never keep coins in a website for long periods of time as terms and conditions can change overnight and there's nothing much you can do about it once you get caught up

I_savor_your_pets

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Thanks so much for the replies. I've been following this thread and wanted to post an update:

Paxful told me I must use Jumio to verify my identity because Paxful lacks the capacity to verify user identity. I don't intend to hide my identify from Paxful, but I also don't want Jumio to keep my biometric data and potentially ask for more documents endlessly.

I've spoken to a friend's lawyer who is willing to help me verify my identify for Paxful and sue Paxful if Paxful insists I use Jumio to verify my identity. For now I'll hold off on suing/traveling due to covid. If anyone has anything to add, please feel free to chip in. Thanks.

arrowlove

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Quote from: The Sceptical Chymist on July 25, 2021, 01:33:56 PM

Quote from: Rengga Jati on July 20, 2021, 06:20:52 PM

Most centralized exchanges will require KYC/AML.

Pretty much all of them do nowadays, with the exception of oddballs like Yobit--but you can't trade with fiat there anyway as far as I know. But OP's point is that when he deposited his bitcoin, KYC wasn't required and now that he wants to withdraw it some time later, they've changed their policy and now he has to provide proof of identity in order to get his bitcoin off of Paxful (and I'm taking OP at his word, since I know nothing about Paxful other than what others have written here).

But getting a lawyer and taking Paxful to small claims court? That's just a very expensive way of making sure everyone, including the legal system, knows you're holding bitcoin. You'd almost be better off going through the KYC process with them than going through the courts. If it were me, I definitely wouldn't go that route if only for the fact that getting a lawyer is likely to cost far more than $1000. They aren't cheap, and there's always the possibility that the court won't decide in your favor.

Quote from: arrowlove on July 24, 2021, 08:50:30 PM

2. you will not find a new york lawyer who will take your case anonymously - will not happen, when you share your info with lawyer - they will share with gov't . In america there is no "lawyer-client" privilege - not in practice since 9/11. Anything AML/FATCA is considered national security and all info will be shared by lawyer.

Are you absolutely certain of that? Because there is--and always has been (AFAIK)--attorney-client privilege in the US, and I've never heard of exceptions being made for financial matters. What you said just doesn't sound right.

Let me tone it down so i dont get banned. Yes. Personally can not advise anyone to count on privilege as protection from prosecution, in any country, especially usa. But ymmv and alot of factors may influence what people 'think' is privileged. That should be plenty advice, and research terms for anyone with real reason for concern.

The Sceptical Chymist

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Quote from: Rengga Jati on July 20, 2021, 06:20:52 PM

Most centralized exchanges will require KYC/AML.

Pretty much all of them do nowadays, with the exception of oddballs like Yobit--but you can't trade with fiat there anyway as far as I know. But OP's point is that when he deposited his bitcoin, KYC wasn't required and now that he wants to withdraw it some time later, they've changed their policy and now he has to provide proof of identity in order to get his bitcoin off of Paxful (and I'm taking OP at his word, since I know nothing about Paxful other than what others have written here).

But getting a lawyer and taking Paxful to small claims court? That's just a very expensive way of making sure everyone, including the legal system, knows you're holding bitcoin. You'd almost be better off going through the KYC process with them than going through the courts. If it were me, I definitely wouldn't go that route if only for the fact that getting a lawyer is likely to cost far more than $1000. They aren't cheap, and there's always the possibility that the court won't decide in your favor.

Quote from: arrowlove on July 24, 2021, 08:50:30 PM

2. you will not find a new york lawyer who will take your case anonymously - will not happen, when you share your info with lawyer - they will share with gov't . In america there is no "lawyer-client" privilege - not in practice since 9/11. Anything AML/FATCA is considered national security and all info will be shared by lawyer.

Are you absolutely certain of that? Because there is--and always has been (AFAIK)--attorney-client privilege in the US, and I've never heard of exceptions being made for financial matters. What you said just doesn't sound right.

arrowlove

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1. like people said - not your keys not your coins. just like banks, not your $$
2. you will not find a new york lawyer who will take your case anonymously - will not happen, when you share your info with lawyer - they will share with gov't . In america there is no "lawyer-client" privilege - not in practice since 9/11. Anything AML/FATCA is considered national security and all info will be shared by lawyer.
3. unfortunately......say goodbye to your privacy or your coins - you will not keep both.

Oceat

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I won't deny that OP can't do anything to make paxful give his gunds back unless he follows their demand and go through KYC. Once you use a services, you should read their ToS first before signing up. There are things that we can't control if we are using a custodial wallet so you better follow their demand or say goodbye to your funds forever.

Most exchanges these days are required to follow their government request to ask KYC to their customers. This is one of the things that the government put on their rules and regulations.

The Cryptovator

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It seems it's hard to withdraw your funds from there without complying with their requirements. You may fight with them in court, but most probably you have to spend more than your portfolio of Paxful. Sometimes exchanges are forced to follow the government's requirements, if something like that then even you can't win from the court as well. If you have access to the address from where you have sent the funds to Paxful, you may try to convince them to send it back to the same address. But I am not sure if it would help or work the right way. But you can give it a try, otherwise, you have to follow their instructions. No one could help you except Paxful support.

Tessnik

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I always advise users to read the terms and conditions of most exchange before depositing your funds in them to avoid being stuck like this, the only option left for you in this situation is to go ahead with the ID verification if you want to get access to your $1k bitcoin if they come up with other excuses again then you take the next step which is legal action.

cabalism13

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Quote from: I_savor_your_pets on July 20, 2021, 01:16:04 AM

Hey mods, if I'm posting at the wrong place, please move this to the right section. Thanks.

Anyway, I deposited about $1000 worth of bitcoins on Paxful when ID verification wasn't required, but now Paxful won't let me withdraw unless I go through ID verification. Because I don't want to hand over my ID, my bitcoins are stuck.

I've spoken to a lawyer who suggested I get a lawyer in New York (where Paxful is based) if I really want to take it to small-claims court, and I want to hold off on suing for now because people here might have easier solutions. If anyone has any ideas, please help me out. Thanks.

My Only suggestion is to go through the ID Verification, as this is for the security purposes, and afaik you are at the limit of transaction which had to do KYC.
BTW, I'm with Paxful and Currently handling USA and South African Communities. Reach out to me if needed. Else, if you still insist on going through without it then sad to say you can't get the funds whatever means you take

Darker45

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I doubt if Paxful will allow you to withdraw your funds without doing KYC. After all, as a user of their platform, you are bound to abide with their updated policies. You cannot simply insist on doing something on the platform based on an outdated policy, one which is already replaced.

There are so many complaints against Paxful all over the internet. People are even calling the site scam.

Incidentally, I suddenly remembered this thread by cabalism13: https://bitcointalksearch.org/topic/free-paxful-help-services-5320332. I'm not sure if it's still working but you might want to check it out and try.

Rengga Jati

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Quote from: I_savor_your_pets on July 20, 2021, 01:16:04 AM

Hey mods, if I'm posting at the wrong place, please move this to the right section. Thanks.

Anyway, I deposited about $1000 worth of bitcoins on Paxful when ID verification wasn't required, but now Paxful won't let me withdraw unless I go through ID verification. Because I don't want to hand over my ID, my bitcoins are stuck.

Most centralized exchanges will require KYC/AML.
This also happens in all regulated crypto exchanges in my country, the withdrawal can be only executed if we have done our KYC requirements and approved. Without KYC approval, we cannot get our funds. That is why before transferring money or assets to exchange, it is better to check the T&C, especially about the KYC requirements.

And in Paxful, it is stated required for that KYC:
https://paxful.com/support/en-us/sections/360003848973-Account-Verification
https://paxful.com/support/en-us/articles/360009324259-How-to-Do-KYC-On-Paxful

Or, if you have tried to do KYC and still not approved, try to contact their CS support and explain your case in details with the proves.

tranthidung

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Quote from: Twinkledoe on July 20, 2021, 10:15:33 AM

The OP mentioned that he registered when KYC was not yet required. And because paxful changed their terms of service, maybe the OP was not aware that KYC is already mandatory on this platform. Too bad, if he can't get out his funds. Why not just submit your KYC docs and be done with it? Because if he will hire a lawyer, he may end up paying for fees that has no assurance that he can get his funds back.

One thing though, someone advised above that put pressure on paxful by being noisy in social media. That is, if he has the patience to do so.

Another rule, What Countries Require ID Verification?.

OP know what he did, and you can not listen to a story from one side and make conclusions.

Additionally, the forum and moderators are not responsible to solve such case. As being said, go to the Paxful website and create a support ticket. Things need to be done officially.

Twinkledoe

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Quote from: dkbit98 on July 20, 2021, 02:59:32 AM

You better read the terms before you register and sign up for any website or exchange, because Paxful had mandatory kyc for some time as far as I know.
There is no lawyer in planet earth who can help you with this so don't waste your time on this, because you signed a deal and accepted the terms when you registered, and you need to pass verification to use their service and withdraw coins.

Read:
https://paxful.com/aml-policy
https://paxful.com/terms-of-service

The OP mentioned that he registered when KYC was not yet required. And because paxful changed their terms of service, maybe the OP was not aware that KYC is already mandatory on this platform. Too bad, if he can't get out his funds. Why not just submit your KYC docs and be done with it? Because if he will hire a lawyer, he may end up paying for fees that has no assurance that he can get his funds back.

One thing though, someone advised above that put pressure on paxful by being noisy in social media. That is, if he has the patience to do so.

tranthidung

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Quote

What causes account restrictions?

Here are some of the activities that can lead to your account being restricted:

Seller of cryptocurrency asking to cancel the trade after the payment was completed.
Conducting a trade outside of Paxful trade escrow by communicating through Telegram, WhatsApp, etc.
Making a chargeback or reversing the payment after it has been processed.
Coin locking or holding a seller’s cryptocurrency in escrow without the intention to make the payment and complete the trade.
Unauthorized use of gift cards, such as selling a gift card in multiple trades and selling gift cards that have already been used.
Forcing or tricking a trade partner to immediately release their cryptocurrency.

Paxful has zero tolerance for the following:

Using multiple Paxful accounts.
Using a fake identity or falsified verification documents.
Using Paxful from an OFAC banned country listed on this page.
Unauthorized use of gift cards / chargebacks / defrauding users.

You know what you did, but if you want to appeal or get support, open as support ticket and wait. How to Contact Support

Taskford

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Quote from: I_savor_your_pets on July 20, 2021, 01:16:04 AM

Hey mods, if I'm posting at the wrong place, please move this to the right section. Thanks.

Anyway, I deposited about $1000 worth of bitcoins on Paxful when ID verification wasn't required, but now Paxful won't let me withdraw unless I go through ID verification. Because I don't want to hand over my ID, my bitcoins are stuck.

I've spoken to a lawyer who suggested I get a lawyer in New York (where Paxful is based) if I really want to take it to small-claims court, and I want to hold off on suing for now because people here might have easier solutions. If anyone has any ideas, please help me out. Thanks.

Maybe there's something triggers them to ask about where your fund came from that's why they want to verify you as the owner of that account so maybe the least thing you can do now is to follow what are thing they require to you since if they insist to give your money even if you already submitted the documents they ask then maybe its time to sue them on court if you have an idea about their location and how to pursue this action.

aysg76

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See you need to comply with the rule and regulation of these exchanges in order to withdraw your funds and moreover the keys to your Bitcoins resides with Paxful and you can't do anything at all so simple is to do KYC verification done with their 3D biometric AI and you will get access to your funds.Moreover I think it is stated that you need to do KYC done before hand on Paxful.

For level 1 only email and phone verification is needed and you can trade between $1000 and if you want to go above then level 2 verification with ID proof of yours is needed.Rest you can check at this site:

https://paxful.com/support/en-us/articles/360011638919-Limits-and-Verification

For that reasons you need some other options because these exchanges won't let you provide complete authority over your funds and try to make P2P trades over localbitcoins and any other useful way you can.

mk4

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Ah, another one of those topics that I get to shill peer-to-peer no KYC services.

Next time, use HodlHodl[1] and LocalCryptos[2] instead. Or if you're a bit more hardcore, probably Bisq[3].

[1] https://hodlhodl.com/
[2] https://localcryptos.com/
[3] https://bisq.network/

examplens

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Quote from: Bitcoins101 on July 20, 2021, 04:36:12 AM

Quote from: dkbit98 on July 20, 2021, 02:59:32 AM

You better read the terms before you register and sign up for any website or exchange, because Paxful had mandatory kyc for some time as far as I know.
There is no lawyer in planet earth who can help you with this so don't waste your time on this, because you signed a deal and accepted the terms when you registered, and you need to pass verification to use their service and withdraw coins.

Read:
https://paxful.com/aml-policy
https://paxful.com/terms-of-service

That's BS, you could absolutely get your coins back with the help of a lawyer when dealing with a company operating legally. Terms of service are not perfectly binding and don't give them a right to steal money. However, Paxful is a criminal enterprise run by a guy with a brain so fried up from drugs that he doesn't see the hole he is digging for himself, so don't expect them to even respond to your lawyer. He's probably looking at $10K+ in legal expenses to get anywhere.

if for a moment we ignore the dubious way of doing business of this service, at the time the OP registered there and deposited the money, there was no mandatory KYC. now they have complied with AML/KYC law and KYC is needed for further disposal of funds.
He can't do anything even if he hires a lawyer or whatever, they act in accordance with certain legal regulations.

I assume they informed all users before introducing the mandatory KYC, so here is his mistake in not withdrawing funds on time.
I think, there are only two options. To pass KYC and withdraw their funds or to forget about this money and move on.

Topic: Exchange won't release bitcoins unless I verify identity. Advice appreciated. (Read 329 times)