is it a pattern of new scam: in the name of KYC, lock their fund.

deepftuned

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Quote

Im wondering on how you do people ending up on using those unknown or unpopular exchangers out there?

I found them on bestchange.com, the problem is that they lowered they fees and they appear the first in most of the exchanges options and thats why i went on with them(i had just woken up and was in a hurry so didnt have time to think a lot) cause i dont exchange through coins that much, especially now that i got a binance account dont need to exchange from other exchanges.

stomachgrowls

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Quote from: deepftuned on February 21, 2021, 11:11:39 AM

It seems that fox.exchange is doing the same thing recently, except that they dont need for users to register but they will (most likely) randomly ask for people to send documents in the name of KYC/AML compliance but they seem to be doing it to scam people. You can see a lot of people are giving bad reviews(Trustpilot, Bestchange, forums,...) for this kind of issue.
You can check my post about this (https://bitcointalksearch.org/topic/i-think-im-getting-scammed-by-foxexchange-5318850). Just go to the links i've listed and you'll see that recently a lot of people are having these issues. They were the ones that got the less fees in the Bestchange list recently, i think the FOMO by people trying to get in and buy different crypto and try to make money doing that has led them to make such scammy tactics cause of course most people wont send documents to a non-registered exchanger and will likely leave the coins and move on with a loss.

I hope im wrong though as i am still waiting for a refund.

Im wondering on how you do people ending up on using those unknown or unpopular exchangers out there?

You got it right that somewhat FOMO did really make out some influence on making out such decision on where people do rushing up on buying crypto without even bothering
on where they do end up on until they do realize that they are already engaged on a shady or scammy exchange.

This doesnt exclude even into those reputable exchangers where issues like this about selective scamming is a bit obvious.

deepftuned

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It seems that fox.exchange is doing the same thing recently, except that they dont need for users to register but they will (most likely) randomly ask for people to send documents in the name of KYC/AML compliance but they seem to be doing it to scam people. You can see a lot of people are giving bad reviews(Trustpilot, Bestchange, forums,...) for this kind of issue.
You can check my post about this (https://bitcointalksearch.org/topic/i-think-im-getting-scammed-by-foxexchange-5318850). Just go to the links i've listed and you'll see that recently a lot of people are having these issues. They were the ones that got the less fees in the Bestchange list recently, i think the FOMO by people trying to get in and buy different crypto and try to make money doing that has led them to make such scammy tactics cause of course most people wont send documents to a non-registered exchanger and will likely leave the coins and move on with a loss.

I hope im wrong though as i am still waiting for a refund.

ggbtctalk000

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----------- UPDATE ------------
For a US based customer who are duped or continually being duped by binance's wrongdoing, there is an BBB URL where Binance's US location is available. I filed a complaint against them and they have attempted to reach twice but for no response. BBB recommended me to reach out to attorney general office as a next step. I am wondering what could entail. I need to explore all the possibilities including this in order to restore my fund locked up by Binance.

https://www.bbb.org/us/ca/san-francisco/profile/cryptocurrency-exchange/binanceus-1116-925674

BAM Trading Services Inc. One Letterman Drive, Building C Suite C3-800 San Francisco, California 94129.

San Francisco, CA 94129

https://www.binance.us/en/home

exstasie

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Quote from: ggbtctalk000 on January 21, 2021, 07:44:22 PM

I actually considered filing BBB complainst which is what I normally but being out of US, I thought i was out of option. But during recent filing of another complaint on BBB, i did notice there is a drop down box, where you can select non-US countries so i am going to explore it.

That'll show them! Tongue

Quote from: ggbtctalk000 on January 21, 2021, 07:44:22 PM

I do have active balance on binance that has been abandoned for years.

So you're trying to log in after several years to empty the account out? Exchanges are notorious for locking accounts and demanding KYC in this situation, even legitimate ones. I don't think they're scamming you. A video verification (although awful) is typical in this situation and is generally the last step. If I already gave them all my documents, I would just do it.

Text

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I have an account with Binance but I am not active in trading ... I have not encountered KYC with them but on other platforms, yes and I know their common policy when it comes to this. In OP's statements, I understand him as if Binance is too strict when it comes to the KYC procedure. You may have been asked to do something, but after you did that, there was something else to follow, that was annoying. People who handle live-support are also different, in fact, they also make mistakes in the processes they perform. What KYC verifications did you submit to them? Selfie? Picture of your Identification document like Passport or Driver's License? Selfie holding the ID? Selfie holding a paper with the date of the day written like that. So what else kind of verification are they asking you for?

The Sceptical Chymist

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Quote from: ggbtctalk000 on January 20, 2021, 09:22:02 PM

Binance asked me to send me a VIDEO of myself after going through extensive verification to restore my password that stopped working after taking several weeks back and forth e-mail with their cust. service. I cited privacy concern and whether their next stage of their verification will be a the video of my dicks or some private part and they stopped responding.

That's goddamn ridiculous. Similarly, I had a problem logging into my Robinhood account and I couldn't receive an SMS text from them because I'd changed my phone number and didn't update it with them (I rarely log into my account). They told me they can't make a simple phone call to me to verify my info. They wanted the front and back of my driver's license, which I submitted to some 3rd party site--and Robinhood said they never got it. I just said "fuck it" and gave up.

I didn't know Binance was such a ball-buster, but it sounds like they're completely inflexible. And then there are shitty exchanges like HitBTC that hit you with KYC when you want to withdraw funds. They have no problem with you depositing funds or trading, but even for a small amount of crypto they want all your dox. They're another one I just gave up on and took the loss.

I'm getting tired of this crap, too.

ggbtctalk000

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Quote from: magneto on January 21, 2021, 06:46:09 AM

Quote from: ggbtctalk000 on January 20, 2021, 09:22:02 PM

It is happening on several exchanges I dealt with: worst offenders are binance, and also bad enough: xwallet and potentially cryptopedia.
I understand KYC is important but lot of times, the login fails to work at one point and restoring password is incredibly difficult or impossible as these exhanges refuse to unlock citing KYC, security after going through their standard verification process and asking for more.

Binance asked me to send me a VIDEO of myself after going through extensive verification to restore my password that stopped working after taking several weeks back and forth e-mail with their cust. service. I cited privacy concern and whether their next stage of their verification will be a the video of my dicks or some private part and they stopped responding.

Cryptopedia went bust however recent e-mail had some obstruction instruction to do a claim and some web url that does not work. Contacting their cust. service replied with half-baked answers. Then disclaimer says if you dont claim within blah blah blah date, you forfeit your fund.

Xwallet also sent me a refusal to unlock after went through all of their password restoration verification process.

This is getting unwieldy.

This sort of thing has actually been going on for a while now.

HitBTC is one of the sites that is notorious for doing this. If you just search them up on the exchanges/scam accusations board of this forum, you will quickly see the sheer amount of complaints against them for the reason that they are holding customer funds hostage whilst requesting some seriously unnecessary pieces of KYC.

When their motives are questioned, these companies inevitably default to the answer of "compliance".

And that's the thing - it is annoying as hell as a customer but you can't prove guilt beyond reasonable doubt. This is why using regulated exchanges with good reviews, but a respect for privacy at the same time is so damn important.

Yes, I used hitBTC, i did not get into password stuff but remember having pretty bad time with them and pulled all the crypto from them. I remember they had sky high charge as well. But BINANCE is more sinister since they got good name and as a result, they got protected when they do such things.

ggbtctalk000

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Quote from: ?? on ??

Quote from: ggbtctalk000 on January 20, 2021, 09:22:02 PM

Binance asked me to send me a VIDEO of myself after going through extensive verification to restore my password that stopped working after taking several weeks back and forth e-mail with their cust. service. I cited privacy concern and whether their next stage of their verification will be a the video of my dicks or some private part and they stopped responding.

They are going to stop responding because the conversation is going on a low level discussion, customer service have specific instructions, and they are going to go off if they think that the conversation is on a low level, I understand the frustration but you also need to understand that you have to focus on the issues and don't insert anything like your dick, that's the easiest way to end the line of conversation.

YEah i agree i was going to low-level but if they did not perpetrate, i would not never have. It is a sad fact you are not seeing who is the initiator. There is this saying of word in a culture I grew up, "even worm squirms when they are touched with finger."

ggbtctalk000

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Quote from: LeGaulois on January 21, 2021, 07:27:46 AM

I think you guys are missing the point from the original post.

Quote

...after going through their standard verification process and asking for more...

Quote

...after going through extensive verification to restore my password...

He agreed with the KYC verification and did send what was necessary. The problem is they keep asking for more. More than what banks do whereas exchanges have less authority. Even more than the city administration when you want to renew your ID card.

Up to the point, @OP starts to wonder if it's an attempt to scam him using the KYC excuse.
But nah... an exchange platform big as Binance won't scam the users with such a method. I agree it's unwieldy but you haven't yet seen what happens at Bitstamp when they ask for a payslip and a tax statement. Cheesy

i'd careful just because they got big name like BINANCE does not mean they dont scam. I d suggest for example, strip down the brand and consider yourself unknown XYZ mom 'n pop shop doing exactly same.

Mom and pop shop promises to hold your crypto and then keeps asking extended question, refusing access to your account after gong through all verification processes published on mom'n pop shop's website. Even complete with verification processess, they ask more question still blokcing your access to your account and even you provided that, they keep asking more. I will put a huge flag on that. I have no respect for BINANCE regardless of how they popular they are, they are pulling off these suspicuous activity even more brazenly because, well, people, just thinks they dont do scam because they re BINANCE.

ggbtctalk000

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Quote from: chaser15 on January 21, 2021, 07:24:43 PM

May I know what's the next step that Binance asks you to do after those extensive efforts to comply with their KYC?

Or currently, it's still pending as they aren't responding?

Do you currently have an active balance on Binance?

i do, I actually considered filing BBB complainst which is what I normally but being out of US, I thought i was out of option. But during recent filing of another complaint on BBB, i did notice there is a drop down box, where you can select non-US countries so i am going to explore it.

yes, it is pending.

I do have active balance on binance that has been abandoned for years.

chaser15

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May I know what's the next step that Binance asks you to do after those extensive efforts to comply with their KYC?

Or currently, it's still pending as they aren't responding?

Do you currently have an active balance on Binance?

ggbtctalk000

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Quote from: LeGaulois on January 21, 2021, 07:27:46 AM

I think you guys are missing the point from the original post.

Quote

...after going through their standard verification process and asking for more...

Quote

...after going through extensive verification to restore my password...

He agreed with the KYC verification and did send what was necessary. The problem is they keep asking for more. More than what banks do whereas exchanges have less authority. Even more than the city administration when you want to renew your ID card.

Up to the point, @OP starts to wonder if it's an attempt to scam him using the KYC excuse.
But nah... an exchange platform big as Binance won't scam the users with such a method. I agree it's unwieldy but you haven't yet seen what happens at Bitstamp when they ask for a payslip and a tax statement. Cheesy

Yeah scam may be overstatement but it is increasingly appearing so. You go through all their verification process by complying everything and they ask more. As a result, it is never ending, they got wielding power to ask whatever they want more and customer can not use their fund and binance has it that they dont entitled to have.

ggbtctalk000

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Quote from: Porfirii on January 21, 2021, 05:13:25 AM

Quote from: ggbtctalk000 on January 20, 2021, 09:22:02 PM

Binance asked me to send me a VIDEO of myself after going through extensive verification to restore my password that stopped working after taking several weeks back and forth e-mail with their cust. service.

I had the same issue, but let's not forget that the fault is ours for losing our credentials, or whatever happened to not be able to log in anymore. The alternative could have been using decentralised platforms, but in that case, after losing access, our funds would've been lost forever.

It is quite unfair to call this a scam, moreover when they let you withdraw 2BTC daily without KYC. A different thing would be the case of Bittrex, for example, who suddenly forced to fill the KYC in order to be able to withdraw Angry

No, I did not lose my credentials it simply stopped working, that is first and secondly it is not user's fault at all to lose their credentials if they did, that is why they implement password recovery mechanism.

LeGaulois

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I think you guys are missing the point from the original post.

Quote

...after going through their standard verification process and asking for more...

Quote

...after going through extensive verification to restore my password...

He agreed with the KYC verification and did send what was necessary. The problem is they keep asking for more. More than what banks do whereas exchanges have less authority. Even more than the city administration when you want to renew your ID card.

Up to the point, @OP starts to wonder if it's an attempt to scam him using the KYC excuse.
But nah... an exchange platform big as Binance won't scam the users with such a method. I agree it's unwieldy but you haven't yet seen what happens at Bitstamp when they ask for a payslip and a tax statement. Cheesy

magneto

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Quote from: ggbtctalk000 on January 20, 2021, 09:22:02 PM

It is happening on several exchanges I dealt with: worst offenders are binance, and also bad enough: xwallet and potentially cryptopedia.
I understand KYC is important but lot of times, the login fails to work at one point and restoring password is incredibly difficult or impossible as these exhanges refuse to unlock citing KYC, security after going through their standard verification process and asking for more.

Binance asked me to send me a VIDEO of myself after going through extensive verification to restore my password that stopped working after taking several weeks back and forth e-mail with their cust. service. I cited privacy concern and whether their next stage of their verification will be a the video of my dicks or some private part and they stopped responding.

Cryptopedia went bust however recent e-mail had some obstruction instruction to do a claim and some web url that does not work. Contacting their cust. service replied with half-baked answers. Then disclaimer says if you dont claim within blah blah blah date, you forfeit your fund.

Xwallet also sent me a refusal to unlock after went through all of their password restoration verification process.

This is getting unwieldy.

This sort of thing has actually been going on for a while now.

HitBTC is one of the sites that is notorious for doing this. If you just search them up on the exchanges/scam accusations board of this forum, you will quickly see the sheer amount of complaints against them for the reason that they are holding customer funds hostage whilst requesting some seriously unnecessary pieces of KYC.

When their motives are questioned, these companies inevitably default to the answer of "compliance".

And that's the thing - it is annoying as hell as a customer but you can't prove guilt beyond reasonable doubt. This is why using regulated exchanges with good reviews, but a respect for privacy at the same time is so damn important.

Porfirii

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Quote from: ggbtctalk000 on January 20, 2021, 09:22:02 PM

Binance asked me to send me a VIDEO of myself after going through extensive verification to restore my password that stopped working after taking several weeks back and forth e-mail with their cust. service.

I had the same issue, but let's not forget that the fault is ours for losing our credentials, or whatever happened to not be able to log in anymore. The alternative could have been using decentralised platforms, but in that case, after losing access, our funds would've been lost forever.

It is quite unfair to call this a scam, moreover when they let you withdraw 2BTC daily without KYC. A different thing would be the case of Bittrex, for example, who suddenly forced to fill the KYC in order to be able to withdraw Angry

Text

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First of all, such a discussion is not appropriate here in the services section. For mods who can read it, please move to the correct board/section (reported). Of the three exchanges you mentioned, I only know Binance, which is the leading and most recognized centralized exchange. In my opinion, it is normal for them to ask you to do something when you ask for a request like that just like when you ask for your password. There is nothing that you can do about it. Then that not only happens to you with the number of users who also have the same problem as you. If I were you, I would just follow what they ask me to do because you have nothing to worry about when you submit a verification related to KYC. After all, it is private data, it is safe for them. That is if you still want to have access to or recover your funds. Also, to prove that you are the owner of the account.

Jawhead999

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I wouldn't call it as scam, but likely as a legal trick to get KYC.

It's why if you want to hide your privacy and don't want to submit your identity, use Decentralized Exchanges (e.g. bisq, hodl hodl). DEXs never ask you to submit KYC, so you'll be safe.

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

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Quote from: ggbtctalk000 on January 20, 2021, 09:22:02 PM

(...)

I think this is a "fair" approach by Binance to request for some KYC before allowing you back into your account. It's the only way to be sure that you're the one requesting access to the account and not just any scammer that got your details from a password breach on other sites and attempting to get access. I have a friend who's in similar predicament. While I do think this is unfortunate especially fot the real account owner, I feel it's a necessary step by the exchange. Binance has been upfront with their users so far. I haven't seen handful cases of users getting locked out whether in the past or recently.

I don't know about the other exchanges mentioned.

Topic: is it a pattern of new scam: in the name of KYC, lock their fund. (Read 303 times)