Topic: The FBI does NOT want you to use KYC-free services. (Read 397 times)

in regards to "intentional witholding of your funds"

its a matter of fact and regulatory compliance that a regulated money service business CANNOT "take your funds" for whimsical/made up reasons of a business policy.. instead they at most without a court order can stop offering services within its business and request you withdraw your funds and be banned from returning after your exit
you wont see regulated exchanges withhold funds just for fun nor 'jus coz we can'


regulated money services only "take funds" when the receive a court order allowing them to take and forward funds to the courts for holding,
whereby the user then has to be contacted by the authorities to prove innocence to claim funds back
to avoid this. simply dont do anything listed as reg-flag suspicious via regulators guidelines MSB follow(dont do illegal crap)

MSB's only get a court order if they have found your financial activity to be of suspicious nature to a threshold level of triggering the business to report to authorities and thus the authorities using their own authority level guidelines if it meets their own thresholds get triggered to then seek further actions
thus your activity needs to meet a threshold of a threshold of suspicion to warrant further actions


its the unregulated CEX that would create business policies/service agreements that allow them to take and keep funds under private business terms
where you would then need to try to sue the business in court to prove their actions are wrong and get your assets back
(kinda hard to sue some as they hide corporate address behind proxy/virtual mail addresses)

best advice
research services you want to use, ensure you can locate corporations legal address and read their T&C's

I don't believe regulated = more safe than unregulated, biggest scams cryptocurrency have seen as of now came from regulated exchanges.

Regulated or not, you can always chase your money in court with the same miserable chance of ever getting it back.

USA laws unfortunately sooner or later reach civilized world, so we better prepare for the worst from this tyrants.

luckily i'm not an american citizen because to be honest, their government is too complicated to take care of everything for its citizens. in my own country, the government only regulates crypto exchanges, not their users. so users are free to make transactions outside of the exchanges that have been recommended by the government, but the risk is that when users lose their money they cannot report this to the authorities.

but i think that this regulation is better. because users are still given the freedom to trade crypto from the exchange they want, because if they want to be safer they can use a regulated exchange, but if not they can use an exchange outside of that, but at their own risk.

We knew this day would come, get ready lads

This is due to lack of education about the threats, a true DEX will always be more secure than CEX due to many reasons - one of them are hacks and stealing of information, exit scams, etc.

I would thought the last case of SBFried should be enough to not trust CEX, ever.
But seems people need to get their own hands burned.

People are still heavily accustomed to being babysit by regular banks, they falsely believe that people behind this money services are safer than math.

I mean, if you really have to use CEX parasite, use it but don't store your coins there - if you do, be aware you are using a regular bank created by shady people and at that point it has nothing to do with cryptocurrencies, you have used cryptocurrencies to transfer FIAT value to their pockets, it stops being cryptocurrency while in their books.

Can't blame people to think about its more safer to trade on DEX since there are big exchange always active to market their exchange then have something nice offers so that a lot of people will be attracted to their offers.

Also on CEX there's a lot of volume for certain tokens listed there that's why many people feel that they are more reliable than any of those exchange.

But usually this is the newbies misconceptions and for sure once they learn a lot from trading for sure that they could able to discover that sometimes DEX is also a good option to trade there token since this could also give them convenience especially if their favorite CEX are already down or there's something issues happened.

Well I personally prefer using decentralized exchanges however it really depends on the person’s personal interests and objectives. Some CEX have really good customer interface that a lot of people look out for. Usually good for beginners as well.

Some people also find CEXs more safe and secure than DEX.

Really great information you have shared. I personally don’t like KYC because when I give the info, I feel nervous that I am being watched (which actually is the case). Some persons may not understand the depth of it but, KYC is a tracker. I can count on one hand how many places I’ve provided that information.

The risk of CEXs too is more than the fact they are centralized, people need to understand that they are registered and regulated. Like you speak of how some of them may not comply to the law.

And the funny thing is, regular FIAT systems have the same scam attack vectors as cryptocurrencies plus some more.

For example your FIAT account can be accessed to take loans even if your account has no money in and on top of that you have to trust this third-party which includes underpaid employees that have been caught numerous times on stealing from clients and even closing accounts after theft.

Everything that's happening in cryptocurrencies also happen in FIAT banking systems but on much larger scale and with even more security issues.

KYC is useless and dangerous but government want their citizens to do KYC with bank and cryptocurrency exchange accounts.

Why KYC is extremely dangerous – and useless

Money laundering exists with bank system too, not only in cryptocurrency but governments want to amplify red flags in cryptocurrency and CEX, not with fiat currency, bank transfer and banks.

People lose money with scam through bank transfers too and most of them don't get their money back. It's not different than with cryptocurrency tradings or payment methods with charge back like Paypal. Again, there is amplification from governments, to make cryptocurrency is like a very dangerous space for their citizens.

That's the implicit message and with the classic reason is that they exist to protect the public from the threat of financial crime and they will come and in if there are indications of inequality and the presence of suspicious activity reports either from personal transactions or from the exchange itself.

Yep, again - people will always abuse power - scams like this also happen in regular FIAT banks but they are not on the front page because government does not want people to lose trust in banks and mostly it ends with a big fine and nothing else. It's the same with other reports like running from the police, they only show us the getaways that ended bad for the criminals but 90% of the time criminals get away.
Police is useless and so are banks and guarantees of any CEX that they will not rob you.

If FBI, government and all the other liars that are responsible for legislation's would really care about our safety they would say "DO NOT USE CEX, USE DEX" - but they will never say that, instead they will keep pushing our heads into the lions mouth and better pray that the lion is not hungry, because he will not hesitate when the time comes like we already have seen so many times on the biggest exchanges.

Correct me if I'm wrong, FTX had all the necessary permits, licenses, certifications, whatever you want to call it, they had it, and we all know what happened at the end. Being licensed is helpful but if someone wants to scam you, they are going to do it anyway, just like SBF did. I really find hard to trust any info about exchanges or cryptos in general coming from US institutions.

Today's FBI is not what it was when it was created, it's corrupted like the rest of the system.

People will always abuse power, that's why we need cryptocurrencies because we cannot trust anyone with our money.

These type of things always makes me giggle a bit. I mean why would they? Think about it, we are talking about a situation that is literally against why FBI was even established. You being in the crypto without telling anyone and not giving any information would go against everything FBI stands for, they are actually considering that as the most risky and dangerous thing that could ever happen.

So, these type of information doesn't really matter to us at all, we shouldn't be considering this news, in fact we should even consider this as something that is literally what we have as ordinary as it gets and assume as much without them showing their hand. This is of course just me, maybe some people held out hope about it and maybe hoped that it would be different but they did not shock us.

Be sure to never have your seed words in plain text, encrypt them using what ever you think is enough and with a very good password that's easy to remember so you won't have to write it down.

Then copy it multiple times and hide it in different places, at least one which is not connected to you but safe enough to store.

Fully encrypted disk for your cold wallet machine and hot wallet machine, encrypt everything - because why not.

tl;dr; - Stay safe my friends, tyrants are coming.

It seems like they got inspiration from all the court dwabblings of conman Craig Wright and his Bitcoin SV's "asset confiscation" feature.

None of them really learn anything, do they.

FTX exchange was regulated, ''safe'' KYC service right?  
And I can give many more examples from crypto space and outside.

They are not stopping there, and they are in coordinated attack against people for some time.
Another news coming from United Kingdom with UK Police and their National Crime Agency just gained new powers to seize crypto from everyone, and privacy coins for them are not ''conducive to the public good."
You just need to be a suspect and police will no longer be required to make an arrest before seizing crypto from you, that includes written passwords, words and usb sticks.

https://www.gov.uk/government/news/new-powers-to-seize-cryptoassets-used-by-criminals-go-live

Speaking of banks, the feds would be very happy if you all just stored your Bitcoins on PayPal. I'm totally sure that there is no conflict of interest with family or associates owning some stake or securities of them or any other fiat money giant with crypto investment capabilities.

This is a warning only for US citizens, right? So it reflects sentiments of the US authorities. Also, an announcement is more of a recommendation and a few threats (it's not legally binding).
It's interesting that in the tips, they say that people should check whether a service is registered as an MSB, but then say that even if it is, it's "not a recommendation" and not "certification of legitimacy". They should get their tips right and sort things out before making announcements and writing tips.
I agree with NotATether that the list is weird, and the logic is obscure (considering Binance).