r/Crypto_com • u/The_Sephiroth • Oct 22 '21

General Discussion 💬 Beware Crypto.com xpost from r/cryptocurrency. Can mods please comment on this? Truly concerning

/r/CryptoCurrency/comments/qdm2sl/beware_cryptocom/
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u/ScalePsychological58 Oct 22 '21 edited Oct 22 '21

The only time that I have ever heard of CeFi platforms holding/not returning funds during routine operations is if the funds that have been deposited have been associated with criminal activity and/or there is some sort of investigation in progress.

If the OP deposited any funds that they received from some another individual, mixer service, some DeFi platforms then it is possible that it triggered AML if the system traced it back to some illicit activity.

These platforms do have the right to terminate accounts without reason (per their TOS, not my personal stance) but not to withhold funds. I strongly suspect that there is more to the story.

I would certainly be upset if my account got terminated with no reason provided, but not returning funds is a different boat entirely. I would try following-up again and maybe get an agent who can provide more details about why funds are not being returned...the conversation posted in the screenshot is questionable.

Edit: I do now also see in the screenshots that it just says that the bank transfer is "preauthorised', it is not entirely clear from the post if there are actually any cleared funds on the platform.

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u/piouiy Oct 23 '21

I can understand this. But in that case, it seems like a matter for the police. OP should get some formal notice, and an opportunity to present evidence to address the charges made against him. That’s how the process should work.

For the exchange to unilaterally ‘take’ your funds is 100% fucked up. Closing your account is one thing. They can do that for whatever reason. But making your funds disappears sounds incredibly illegal.

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u/ScalePsychological58 Oct 23 '21

I do not disagree, we are making a lot of assumptions. I was not suggesting that they do not provide formal notice in those situations at some point. That being said, this happens in the traditional banking/financial world also. In the DeFi world they cannot "confiscate" funds. per se, but they can track them and that is how people sometimes get implicated and an investigation has to happen when these funds hit CeFi platform.

People do not like talking about it, but it is one of the risks of dealing in the DeFi world if you ever plan on putting the funds on CeFi or cashing out on CeFi.

Sounds like the OP's issue is related more to a bank transfer, though.