Topic: Exchangers on a list of shame? (Read 156 times)

I think this is an excellent point and we do get a somewhat unbalanced and maybe unfair view of exchanges on the forums. I for one am active in complaining about exchanges on this forum when I believe they are acting unfairly - however I always follow my posts up when the issue has been resolved. I think this is important so that other readers can be informed and know that serious issues are addressed. Poor service is one thing but we need to distinguish this from people actually losing their money. If someone is claiming that 10K has not been paid out by an Exchange I want to know if they ever got it. Now I imagine they do eventually get it but if a thread is not finalised by the writer telling us then we are all left up in the air. It is good to see members from the Exchanges on here trying to help. CEX.io have always answered my concerns on this forum even after I have screamed at them for help and they have let things go for a long time. The same has happened with other Exchanges. I cannot say the same for Coinbase however as they appear to have an arrogance that is well above all the rest.

That's certainly true. However, a very bad practice, and definitely shady, of exchanges is that while some of them don't allow anyone to cash out without verifying, they still do allow people to deposit whatever crypto funds. What's the point legitimately to allow people to deposit without them having the ability to cash out anything? It's just an attempt to trap in people and give them no chance but to follow through with their personal information and ID scans, etc. I think in this aspect the governmental regulations should be more harsh, and punish exchanges for receiving funds without having verified people beforehand. It isn't only fair to the people, but it will also save exchanges so much time when it comes to allocating time to reply to the tickets being the result of all this.

Hi Bitbunny. You have some excellent questions here that had to be asked.

As with any industry in the world, you typically only hear complaints from clients and rarely hear praise. In other words, someone is far more likely to post that they're having an issue on an exchange rather than saying that everything went perfectly. If you stop by our Bitcointalk post, you can see that usually what happens is someone has an issue, it's dealt with and resolved. There are always abnormal cases that take longer than others, but those are very few and far between.

If a fiat deposit is found to be fraudulent, it will be returned to the sender. Usually cases are just as simple as that, but of course every situation is unique.

If you need anything or if you see someone that needs help with a Kraken issue, please have them drop by our Bitcointalk thread.

This sounds reasonable. I could agree that poor management and insuficient or bad quality customer support could be a part of the problem. And of course many users that doesn't even read the terms of service.
So it would be better to try to fix the problems through available chanels before they are accused of scam, unless users have really strong proofs for that.

My honest opinion is that most of the well known Exchanges such as Coinbase, Kraken, Cex.io, Bittrex ete etc are not scams. They are legitimate businesses but have lost their way with greed and poor management. I have posted many comments on this forum relating to the frustration I have felt with these exchanges but in the long term I have always got my money or my crypto. The problem is that if they continue to operate as they are doing now by not providing customers with answers to lost funds and withheld or delayed funds they will lose all credibility. I have had situations where I have had what I consider to be large sums of money held up by and Exchange either through it being stuck in their process system or supposedly on the way to a bank for weeks on end. This has been accompanied by a complete lack of communication. Can you imagine if you went into your bank and they had misplaced $5000 for example and they said they could not talk to you about it for a few weeks as they are busy recruiting new customer? You just cannot put people through that kind of stress and yet all these exchanges are doing it on a regular basis.

What would be better is to have a list of Exchanges that have actually improved and started to provide customer service. That would be a lot shorter. It would be a good start however

Many of the problems with the exchanges is poor support rather than scam.

An exchange could always serve millions of users but only scam a few to make any scam accusation opened against them less credible so you can't really know for sure who's lying. Users are to blame in some cases too, they accuse exchanges of closing or freezing their accounts while they didn't even read the User agreement (e.g Gambling using Coinbase). Honestly, to avoid such things, one should always be in full control of his private keys and only do P2P trading.

I'm watching this thread and I can't to notice that there is almost no exchanges at all that hasn't been accused for scam or some serious missuse. Poloniex, Kraken, Bitstamp, Coinbase, Bittrex and many others.
It's hard to beleive that this is happening for many of them after many years of legit business.
Are they all really so corrupt or is it maybe something in regulation of these exchangers that allow them to freeze or close the accounts and funds when they have suspicious users' activities connected to money laundering, terrorism financing or other criminal activities? Does so many exchangers deserve to end up on a list of shame?