Topic: How does Cash App facilitate customer BTC payments? (Read 80 times)

I'm quite confused, but it seems the address to which you sent your BTC isn't Cash App's hot wallet. It only has 12 transactions all in all. It doesn't even have a balance in it. For a service like Cash App that has tens of millions of users, I doubt their hot wallet gets drained.


Are you sure they're doing this? It seems strange. It's not as if we're running out of addresses. You mean to say Cash App uses a random user's address when another user is withdrawing funds? Is that what you're saying? And a user's address could be reassigned to another user? That doesn't seem right. Is this really common among exchanges?

CashApp is being honest when they said that they reuse wallet addresses in different customers, especially in types of transactions such as withdrawal, which could explain how your BTC landed into that other fella's account. Once the wallet is used and cleared, it may be reassigned to another user as part of how they manage addresses and reduce costs, which, for that matter, is not uncommon among exchanges either. It seems the issue seems more related with the way they use and rotate their hot wallets.

With exchanges such as Binance or Coinbase, for instance, the process is pretty clear in case of such a mistake, and they even return funds transferred to them by mistake. If Cash App is reusing wallet addresses this quickly without due warning to the customers, it would be a security vulnerability, hence, you definitely have a case to push back on their responsibility to help resolve this. I think you should ask more about wallet reuse policies from Cash App and whether there has ever been any precedent of recovering lost funds through other people's accounts in a case like yours.

From my experience, exchanges typically consolidate deposits first to their addresses, but from your description, it's not the case with cashapp i guess.

Though the thing is, at the end of the day, you sent it to the wrong address. And it's gonna be their words against yours. They could always argue it's just how the way they do things as they don't necessarily have to follow everything everyone do or they wanna save miner fees hence the setup.

Always triple check addresses next time.

I get what you're saying and it seems like they would refund me but they're trying to say the address I literally just received my cash app withdrawal form was switched to another users account and my BTC was sent to them.

Does that even make sense? I get these addresses are switched and there's different addresses for withdrawals and deposits. But why would they reuse an address linked to my account for a withdrawal, to another users account for a deposit less than an hour later.

That doesn't add up to me.

I don't really get what is happening on the explorer either. The address mx shows 12 "main" tx. It shows it was sent $306 which was my BTC withdrawal. It shows it sent it to me then I sent it back. Then it shows some other tx in-between. Before sending my BTC somewhere else.

The address ending mx does not seem like it's tied directly to a users account. It seems to act like the middle man address where funds get sent before being sent elsewhere.

If that's the case my argument is valid as cash app was in possession of the funds last. As I didn't send the BTC directly to another users address, I sent it to the middle man BTC address.

Which then still doesn't add up because if I did that then how would my BTC be transferred to another user? Idk sorry for an the questions just trying to understand.

I have never work in centralized exchange, but my speculation is address on CEX isn't always belong to one user, when the coins belong to CEX, what you seen on the screen is off-chain version, not on-chain.

I believe that they have a rule like "we're not responsible if you sent the coins to wrong address" because deposit and withdrawal are different, you can't win here.

This depends on them, either they want to refund the money or not.

On Aug 30 I made a stupid rookie mistake. 

In short, I sent BTC to a cash app wallet address they used for my BTC withdrawal from Cash App by mistake.

Due to the address no longer being tied to my Cash App account (which I don't get why exactly it wasn't since they claim they only change the address after you receive a BTC deposit mine changed right before?!) the BTC was not returned to my cash app account.

From my understanding, Cash App facilitates customer withdrawals by first sending user BTC to a Cash App hot wallet address before sending the BTC to the requested external wallet address indicated by the customer. Meaning that the BTC should have last been in the possession of cash app last. But upon finally receiving a reply from Cash App months later they told me something surprising that doesn't add up.

They claim that the wallet address that I sent the BTC to on accident was linked to another Cash App users Cash App account, and they are the ones who received my BTC. I thought that since the wallet was owned by Cash App the BTC went to Cash App and that they would be able to return an equal amount of BTC back to me but they are not trying to do so.

Cash app isn't the only one to facilitate tx like this. Exchanges do it too to reduce cost of fees and from what I've heard when a customer makes the same mistake I did, the exchange will return the funds to the customer.

My question is:

Could Cash App be right and could it be possible that the BTC address which is;

(bc1q8cfvewthndj7lapq6jku76x9zkzwhet3x98lmx)

That was used to send me my BTC withdrawal from Cash App only about 30 minutes before, been switched from being connected to my Cash App account, to being connected to another user's Cash App account instead?

To me this doesn't make any sense whatsoever. Not only is it a security risk it just doesn't add up why would they reuse a BTC wallet address that was just tied to a users account that quickly?

The address ending mx only has

I'm thinking they are just trying not to take responsibility for it even though it's only like $321, still a lot to someone who's broke thanks to crypto casinos.

But if anyone can please help me out with this I'd really appreciate it.