One of the local exchanges I used back then also doesn't allow gambling transactions, if they catch you sending coins directly through their wallets, they'll suddenly limit your account and require extra KYC before they let you withdraw the remaining balance you have on their wallet. After that bad experience, I always assumed that most exchanges are that strict with how they handle the coins coming from casinos. You'd be lucky if you could find another option since exchanges rarely care about how they settle these kinds of issues.
Maybe we should have an alternative wallet as a bridge to transfer balances to an exchange wallet, I don't guarantee that this recommendation is safe, but we have never been connected directly to a wallet that accepts coins from the casino. I think it is better to review some of the top exchanges to find one that does not prohibit casino related deposits. However, never withdraw directly from the casino to an exchange account, but use a personal wallet for withdrawals and you can send to the exchange to transfer to USDT, or you can use a trusted P2P service to withdraw the balance to your account. 
Topic: How to resolve gambling related wallet issues - page 2. (Read 585 times)
a popular exchange which freezes a customer account because of funds received from gambling site as rewards
If I knew an exchange is doing that I would remove all my money and ask them to disable may account. I'd stop being their customer because that goes completely against the values bitcoin was built on.
If your money was frozen, I'd get a lawyer. They have right to refuse to process your transaction, can demand KYC, but cannot steal your money. You're not guilty of anything and should be given your property back. Otherwise it's theft and you can sue them. Get a lawyer to write them a letter asking to return your money.
And besides, in any case, you will still have to verify your exact personal data, which is unacceptable for many players.
Unfortunately I don't think there's much recourse for the customer. If funds deposited are locked by the exchange, he will need to complete a KYC procedure, if not he will need to mix his funds or to convert them into another cryptocurrency on another exchange before sending them to this exchange again, and from another address of course.
I do not really understand you. You mean that the coin might be seized or locked in which the customer of the exchange that his fund was locked because he deposited from a gambling site will need to complete a KYC verification. That might be true but I do not know. What I am confused about is that you further said 'if not', which means if the coin is not seized. If the coin is not seized, how can the person know that he need not to send coins from gambling site when he does not know. Or what you mean is that to avoid the coin not to be sized? It is better for the person to send the coin to a noncustodial wallet instead and not an exchange, especially if it is bitcoin because bitcoin transaction fee is high on exchanges than usual and this exchanges like Coinbase make the gambling rules hidden in their ToS. You do not need to convert the coin to another coin. People have said they send the coin to noncustodial wallet before sending to the exchange and no problem after they send it to the exchange. 
One of the local exchanges I used back then also doesn't allow gambling transactions, if they catch you sending coins directly through their wallets, they'll suddenly limit your account and require extra KYC before they let you withdraw the remaining balance you have on their wallet. After that bad experience, I always assumed that most exchanges are that strict with how they handle the coins coming from casinos. You'd be lucky if you could find another option since exchanges rarely care about how they settle these kinds of issues.
a popular exchange which freezes a customer account because of funds received from gambling site as rewards
If I knew an exchange is doing that I would remove all my money and ask them to disable may account. I'd stop being their customer because that goes completely against the values bitcoin was built on.
If your money was frozen, I'd get a lawyer. They have right to refuse to process your transaction, can demand KYC, but cannot steal your money. You're not guilty of anything and should be given your property back. Otherwise it's theft and you can sue them. Get a lawyer to write them a letter asking to return your money.
Creating this thread for us to discuss what ways to resolve wallet blacklist on exchange because of gambling related issues.
What motivate me to start this thread is a recent event with a popular exchange which freezes a customer account because of funds received from gambling site as rewards, so in this kind of situation where a wallet got blacklisted what are the ways to go about redressing and to redeem the situation legally.
Unfortunately I don't think there's much recourse for the customer. If funds deposited are locked by the exchange, he will need to complete a KYC procedure, if not he will need to mix his funds or to convert them into another cryptocurrency on another exchange before sending them to this exchange again, and from another address of course if he wants to bypass the blacklisting imposed on this address. Exchanges can't monitor all the adresses of a same wallet, they can only spot linked addresses to blacklisted addresses. What motivate me to start this thread is a recent event with a popular exchange which freezes a customer account because of funds received from gambling site as rewards, so in this kind of situation where a wallet got blacklisted what are the ways to go about redressing and to redeem the situation legally.
However, in my view, the behavior of such exchanges which have tendency to freeze up customers account funded directly from gaming sites is nor fair in regard to BTC itself.
Exchanges are not designed to be fair to BTC in the first place; it's all about how they can benefit and make their profit; they don't care about decentralisation and privacy.For those exchanges, which make it very clear that they don't want to deposit from a gambling site directly, I think it should be best for the gambler to avoid making a deposit directly from their gambling account; it will be like knowing the rules and still breaking them, which is why they are given the exchange privilege to lock and claim the user's account.
3.- To make withdrawals from services that blocked your address, you only have to create a new fresh address get the money and then import the privatekey to a wallet to access the coins, that can be done with vanity gen.
If an exchange doesn't allow transferring fund to/from a gambling website, they will likely block your account if you do so and you will no longer be able to use the exchange.And why using a vanity generator?
A vanity generator is used when you want to have a bitcoin address with specific characters.
Because that's the easy way to generate an address without a wallet. But anyone can generate new fresh addresses with their favorite method, i just recommended vanity as an option but there are a lot of ways for it. A vanity generator is used when you want to have a bitcoin address with specific characters.
3.- To make withdrawals from services that blocked your address, you only have to create a new fresh address get the money and then import the privatekey to a wallet to access the coins, that can be done with vanity gen.
If an exchange doesn't allow transferring fund to/from a gambling website, they will likely block your account if you do so and you will no longer be able to use the exchange.And why using a vanity generator?
A vanity generator is used when you want to have a bitcoin address with specific characters.
To be on the safe side, withdrew rewards to the wallet under your own control, move the relevant UTXO ( just for the case) to other wallet's address before proceeding for topping up your account on any exchange.
However, in my view, the behavior of such exchanges which have tendency to freeze up customers account funded directly from gaming sites is nor fair in regard to BTC itself.
However, in my view, the behavior of such exchanges which have tendency to freeze up customers account funded directly from gaming sites is nor fair in regard to BTC itself.
.. so in this kind of situation where a wallet got blacklisted what are the ways to go about redressing and to redeem the situation legally.
There is no legal fix for this because they legally did this to your account. If they have stated in their terms that you cannot use their platform to trade your account from the gambling platform, and if you are caught, that's the end unless they issue a pardon based on how good your explanations are.
As a gambler and trader, you must know the consequences of not reading and following the terms.
You could coinjoin your sats so they can’t tell they came from a gambling website, but then they might have a problem with people using privacy services and you’re back to square one. Any exchange that is freezing people’s accounts for something minor and inoffensive, like gambling, is not worth using and you should explore an alternative option. Sometimes, withdrawing from a casino to your personal wallet before depositing to an exchange is good enough for you to be considered compliant.
I thought this was purely a USA type law restricting citizens possibly, not an issue for the entire world but maybe thats not the case. Gambling is not banned in most places, its just a question of various taxes depending where its based and so on. I know USA had a deal wanting to tax any company serving its citizens so its related to that probably.
It's actually an issue for most crypto gamblers that aren't aware of it. Most of us probably haven't experienced it but there always are those guys that have experienced this.But this isn't a matter of taxation but wanting to get rid of any connection to the money that's believed to be black money.
And you'd be in a badder shape if you've been KYCed and then you did something like this unnoticed. Well, instant exchanges won't guarantee you from avoiding this but many seem to be find a solution there.
If this is already happening, you have no choice but to contact support and comply what they're asking. It is possible the exchange would require a higher level of verification which might include sources of funds.
But if we talk of preemptive measures, I'd rather not connect gambling wallets with centralized exchanges. Some exchanges may outright include provisions in the user agreement that gambling funds aren't accepted. Some may not. However, as gambling is generally perceived as a popular way to launder money, it's possible they'd block gambling money anytime. So, in order to avoid such possibilities, it may be best for us to avoid sending gambling funds directly to exchange wallets.
But if we talk of preemptive measures, I'd rather not connect gambling wallets with centralized exchanges. Some exchanges may outright include provisions in the user agreement that gambling funds aren't accepted. Some may not. However, as gambling is generally perceived as a popular way to launder money, it's possible they'd block gambling money anytime. So, in order to avoid such possibilities, it may be best for us to avoid sending gambling funds directly to exchange wallets.
To me I don't really see why account will be free just because of phones received from gambling site that shows that the exchange is not trustworthy of such funds exchange is not supposed to act like the fiat, fiat is only currency that has a lot of instruction and rule yes exchange also have instruction but not this kind of instructions and rule to such money exchange is somewhere you supposed to keep huge amount of money that is not supposed to be in your fiat account so I don't know why they will free the account this is my first experience but I don't think nice or good idea anyway that is the arrow I'm just have to be careful on the exchange you put your money
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When you wants to playing gambling, it is better you don't connect your wallet from the exchanges. You can use other wallets to deposit or withdraw your coins to the casino site. That will be safe for you from the exchanges prohibition to deposit the money from the casino site.
This is too hassle since you will spend double fee(one when you withdraw from the casino and the other one is when you are transferring the funds on exchange). It’s more convenient if you will just use an exchange that doesn’t have any rules regarding receiving funds from gambling since casino is legitimate business which means they have no reason to ban it unless the casino itself is illegal.
I believe you will only have trouble when you withdraw directly from casino to exchange when the exchange wallet belongs to the sanctioned wallet address or in short blacklisted by the government.
It's not the first time I have heard that something like this has happened, there have been stories about things like this before. But such a thing has never happened to me, and I have used many exchanges and have zillion transactions from exchanges to gambling sites and vice versa. And I don't know anyone who experienced something like this.
It is difficult to determine if something like this is really true... in exchange offices (as well as in casinos) people are often banned for various reasons, and people often "forget" to tell the whole story and show some proof. Maybe it's just that their account is connected to some other shady dealings but they decided to attribute it to transactions with the casinos.
I hear you. Things can get blown out of proportion, but there's definitely a history of exchanges taking action when it comes to gambling. It's a gray area, for sure, with legal stuff mixed in. If the original poster could give us more info – like which exchange, what kind of gambling, any conversations they've had – it would really help us figure out what's happening and give better advice.It is difficult to determine if something like this is really true... in exchange offices (as well as in casinos) people are often banned for various reasons, and people often "forget" to tell the whole story and show some proof. Maybe it's just that their account is connected to some other shady dealings but they decided to attribute it to transactions with the casinos.
For anyone else dealing with crypto and gambling, I'd recommend taking a good look at the exchange's rules and the local laws. Keeping detailed records of everything is also a smart move, just in case.
I see some confusion on this thread, so, let me explain some points:
1.- The wallets don't get blocked, are the addresses that get blocked, and those are two different things.
2.- Bitcoin Address wasn't made to be recycled the idea from satoshi was the users to use a new address on each new transaction, so, we are doing it wrong.
3.- To make withdrawals from services that blocked your address, you only have to create a new fresh address get the money and then import the privatekey to a wallet to access the coins, that can be done with vanity gen.
1.- The wallets don't get blocked, are the addresses that get blocked, and those are two different things.
2.- Bitcoin Address wasn't made to be recycled the idea from satoshi was the users to use a new address on each new transaction, so, we are doing it wrong.
3.- To make withdrawals from services that blocked your address, you only have to create a new fresh address get the money and then import the privatekey to a wallet to access the coins, that can be done with vanity gen.
It's not the first time I have heard that something like this has happened, there have been stories about things like this before. But such a thing has never happened to me, and I have used many exchanges and have zillion transactions from exchanges to gambling sites and vice versa. And I don't know anyone who experienced something like this.
It is difficult to determine if something like this is really true... in exchange offices (as well as in casinos) people are often banned for various reasons, and people often "forget" to tell the whole story and show some proof. Maybe it's just that their account is connected to some other shady dealings but they decided to attribute it to transactions with the casinos.
It is difficult to determine if something like this is really true... in exchange offices (as well as in casinos) people are often banned for various reasons, and people often "forget" to tell the whole story and show some proof. Maybe it's just that their account is connected to some other shady dealings but they decided to attribute it to transactions with the casinos.
When you wants to playing gambling, it is better you don't connect your wallet from the exchanges. You can use other wallets to deposit or withdraw your coins to the casino site. That will be safe for you from the exchanges prohibition to deposit the money from the casino site.
The casino have its right to asks their customer about the source of the funds and will block their account if the funds is coming from the gambling or other sources. We as a gambler must be careful when we want to use exchanges for gambling and it is better we use the other wallets.
You can send your coins to p2p exchanges, convert it to other coins and lets them send the coin to your gambling account. That will be good solution for you but you need to be careful to use this way. You must concern about the amount of money you wants to send from exchanges to your gambling account and vice versa.
The casino have its right to asks their customer about the source of the funds and will block their account if the funds is coming from the gambling or other sources. We as a gambler must be careful when we want to use exchanges for gambling and it is better we use the other wallets.
You can send your coins to p2p exchanges, convert it to other coins and lets them send the coin to your gambling account. That will be good solution for you but you need to be careful to use this way. You must concern about the amount of money you wants to send from exchanges to your gambling account and vice versa.
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