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I am an early adopter of BTC and an enthusiast.  I perform most of my transactions privately via crypto, online and in real life.   I never give out my personal information to anyone, I consider it an insult and disrespectful if some insists to gain my personal information.

I made an account on Binance (https://binance.com) fairly recently so I could test out a trading bot.
I deposited around 0.5 BTC and a few days later I attempted to make a partial withdrawal.

I use a VPN to maintain privacy and prevent ISP snooping.  Binance locked my account and would not allow me to make any withdrawals due to an IP address change.  Despite going through 2FA and email verification they still would not unlock my funds.

I opened a ticket and asked politely to have my account unlocked and even provided additional ways that I could verify that I am the account owner and owner of the funds deposited into the account.

They replied with draconian requests to harvest my personal information.  I refused this.

Binance Requirements
-----------------------------------------------------------------------
>>Security questions: (The registration information could be located by searching keyword [Registration] in your Binance email.)
1. Account registration date
2. Account registration IP

>>Photo verification:
1. Both sides of your ID card or driver license, or If you would like to provide your passport, please attach the information page only.
2. Selfie with ID card, driver license or passport information page.

>>Video verification:
In the video, please provide your withdrawal records and communication records with Binance CS. You also need to appear in the video and hold the information page of your ID document, and clearly say: "Today is the year/month/day, my account is applying for withdrawal of XXX coins with XXX amount. I confirm that it is my own operation. I am Contact Binance CS to resume the withdrawal function of my Binance account xxxx@xxxxx.com"

Binance has implemented a number of security measures to ensure that your information is not lost, abused, or altered. We will not disclose or provide any personal information to third-party sources without review from our legal case team and/or prior consent from the user.
------------------------------------------------------------------------

I have continued to contact them and politely demand my funds be unlocked to no avail.

From my perspective the owners of Binance are thieves and everyone should consider closing their account on that platform.
Making sure to specify why you are closing the account.

If you care about your privacy and identity protection do not use this rogue service.  I hope this will help others avoid falling victim to these predators.

Regards

They technically really didn't steal your funds. While I'm also totally against KYC/AML especially with those kinds of requirements, it's pretty safe to assume that Binance is just trying to make sure that you're actually the owner in this case. Also, did you not use a VPN when you registered your account? Hence the IP geo-location jump?

tldr; you used a centralized service, and they suddenly required KYC/AML. Nothing really suprising.

We can't say exactly that Binance stole your money. Using free VPN everytime you login your ip will change and that's the issue for security of your account. Their intentions isn't to steal your money. What I realize, they just want to make sure you are the real owner of your account. Their requirements to prove yourself is reasonable. If you were worried about your privacy then you shouldn't go with any centralized exchanges either Binance or any other.

Had you read their terms and conditions (https://accounts.binance.com/en/terms)? Most likely you were agreed to provide you identity if needed. Read again all the information before make a accusation. For future, try to use decentralized exchange so you will not ask for KYC or something similar since you have privacy issue. Or you might use instant exchangers to hide your identity those do not required your KYC.

If you don't want to reveal your real IP address or go through KYC if something terrible happened, DEX is your option.

Centralized services will always do this due to legal and various other reasons. Some of them will return your money to the deposit address that you use but not everybody is that nice.

Not sure how an ID card would prove I am the owner of the account, what will they compare it to?  There are fake ID's out there.  I offered to prove cryptographically that I am the owner of the BTC address that funded the account and asked them to return my funds to that address.

I created the account a few months ago with a real VPN service.  There was no geo-location change from the session when I deposited the funds to the session when I tried to withdraw only an IP change in the same region.

They should allow competent individuals who know how to store credentials and keep them safe opt out of nanny style "security practices"

I have been using Bitfinex and other exchanges with no issues.  As far as I am concerned they stole my funds because they took away access to funds that I can prove belong to me.  KYC or KFC, you can't use acronyms to justify immoral actions.

The issue with DEX at this point is there is no advanced trading bots that support them.  I spread out my trading funds over multiple exchanges as not to become a target for hacks.

It's all good though, will earn that back in 12hrs of trading  ;)

Binance widely advertise their non-verified account which they state is allowed to withdraw up to 2 BTC per day without undergoing any form of KYC. If OP has deposited, traded, tried a partial withdrawal, and then been blocked, then Binance are lying. What OP has done is the bare minimum of what people may use an exchange account for (short of just depositing and then immediately withdrawing again, which is pointless). If he isn't even allowed to do the bare minimum without Binance reneging on their promise, then Binance are lying to everyone. OP is in the situation where Binance are holding his coins hostage, and he either has to forfeit his coins or forfeit his private information. I'd call that theft.

No, it isn't. If they want everyone to undergo KYC, then they need to stop advertising their unverified account, and they need to force complete KYC before you are able to deposit coins to their platform. Allowing users to deposit and then holding them hostage and demanding KYC is completely unreasonable, and borderline scammy.

Can we hear the side of Binance here? Is there Binance support account in the forum? His partial withdrawal doesn't come close to their daily 2BTC limit, so why asked for KYC? Is that because he just changed his IP address? But the OP said that he even completed the 2FA and email verification. Is Binance strict with IP change? What if you don't have your static IP at home but a dynamic one? Want to hear the side of BNB if they have support here regarding this matter. If the OP wants, he can create a thread in the Scam accusations board, so they may respond fast to this problem.

That's a bigger question mark then if they required KYC/AML even if you didn't switch geo-locations. One thing's for sure, this is the first instance I've known about Binance doing such thing(though I haven't went to Reddit for a while soo..). You definitely got unlucky.

Surely looks really really bad in a privacy conscious person's point of view, but I just don't think the case is black and white. I'd probably ever-so-slightly understands Binance's stance because though Binance has been a shady platform, I don't believe they're 100% evil; and I definitely think the possibility that it's simply the case of them just wanting to protect their users is there, but apparently OP didn't even change IP geo-locations so that definitely changes everything.

This thread should be in the reputation section, I don't think people will just follow your instructions without giving us proof and without hearing Binance's side, how many funds are locked that they will allow their reputation to be tarnished just like this, they spend millions of dollars to build their reputation, so why to ruin with this one issue, continue communicating and follow their instructions, they just want to make sure that their protocol is being followed.

The chance of them responding is essentially zero, and even if they did, they would just give some wishy-washy justification without clearing things up at all. "OP's IP address changed, which triggered our anti-money laundering protocols", or something similar that essentially absolves them of all responsibility.

Lol. What reputation? Binance have pulled moves like this before, and they will again. They've been hacked for coins and they've been hacked for KYC documents. CZ wanted to perform an entire chain re-org to fix the result of their own poor security. Despite all this, they continue to have millions of customers. Another user having 0.5 BTC stolen from them is a drop in the ocean of shady/untrustworthy things that Binance have done. It won't affect their profits, and so they don't care.

There shouldnt be a problem with these IPs after all its less than 2 BTC.


Wouldn't binance look at the social media account and see if its a verified account on social media?  ;D

I have the same issue with Binance. I lost my phone and upon recovering they were asking more IDs. The ones I use to verify my account was my driers license, I gave my passport up since they are asking another government ID.

This is the problem with all the centralize services, you will never know when you will be asked to provide KYC. You can't say it scam because they have the right to ask if they find if suspicious at any time as per their ToS. So, why would you call it scam?

Because they have essentially confiscated OP's money without his consent and against his will.

Here's what wouldn't be a scam:
Binance let you create an account, but force you to go through KYC before you deposit any coins. If you don't want to go through KYC, you can't use your account and you can't deposit anything.
If after you've deposited coins Binance decide they want you to go through KYC, then if you refuse they will return your coins to the address they were deposited from before closing your account.

Here's what is a scam:
You deposit coins, and Binance freeze your account and say "Give us your documents or we keep your money". The only way this wouldn't be a scam is if it was clearly stated in their ToS, which it isn't. If Binance want KYC on all customers, then they need to stop advertising their unverified "2 BTC daily withdrawal" accounts immediately.

I've been confronted with several exchanges where they allow you to deposit and trade without KYC but the second you want to withdraw they drop the KYC bomb on you, without it ever being mentioned while signing up.  Its a shady tactic.

Didn't expect it from binanace, who themselves keep jumping around island nations to skirt regulations.

Thanks for the interest and great suggestions.  Glad to see people calling out the bait and switch tactics.

I posted this because I felt cheated assuming I could use the platform with small amounts of BTC without verification based on their marketing.

This amount is insignificant to me but I was compelled to let others know.  I hate corporate bullies and I know most people would just have to give in to their demands.

They have been ignoring my replies for over a week but I finally got a reply with somewhat more reasonable requirements
.  
Maybe they were made aware of this topic posted here?

thanks again

I doubt this topic has something with fact that they change their minds, unless you personally warned them that you opened it. Although Binance is a company that has become very influential in the crypto world, they still need to look after their reputation. I think it all depends on how much dust someone picks up when they are dissatisfied with a decision, because if the user only uses official support then there is no harm to the company.

At the moment when the whole thing goes public, it then becomes a problem that needs to be addressed as soon as possible because a dissatisfied user can be the reason for the loss of numerous future users, and perhaps the current ones.

It's always been strange to me that Binance doesn't have a KYC for a pretty high withdraw amount, but in reality the story seems to be something different.

You are right of course, but the fact that this is the case is a massive cause for concern and should give people pause before they decide to use Binance (or any other exchange with similarly terrible customer support such as Coinbase).

A company which actually cares about their customers will do the right thing for them in private, without needing any public coercion or announcing how great they are for resolving it. As an example - many years ago I had a piece of computer hardware which failed on the exact day its two year warranty ran out. I emailed the company in question, and got a reply within the hour with a prepaid packing label for me to ship it back to them. Within a week I had received a better part at no cost to me and with a new two year warranty on it, since they no longer stocked the original part. I am now essentially a customer for life with said company, and will preferentially use them even if they are slightly more expensive because of how great their customer service is.

Companies which ignore their users' tickets, send endless automated emails, make them jump through hoops, make unreasonable demands, and only actually bother to attempt to solve the issue when enough noise has been made publicly are not companies we should be using. Such companies obviously don't care about their users - all they care about if their profits. If you can't generate enough community support or visibility with your complaint, then they won't bother to solve it since it won't cost them any other customers. You are essentially relying on the community to like/share/upvote/retweet your complaint enough for it to actually be dealt with.

Before you join a crypto exchange, you should have at least read their verification levels whether or not they have a non-KYC widthrawing level. Missing this part will make a lot of newbies screwed when they are against KYC yet they have deposited a large sum of crypto in their account, obviously these exchanges will lock these accounts immediately before they can do anything something illicit from their platform, they are just trying to avoid this from happening that is why they have locked your account. If you really want your money back then just sacrifice it this one time and give out the KYC requirements they are asking for, it is simple as that.

And before you answer, you should read the OP. Did you read OP's post? He's on binance.com, not binance.us. No KYC is supposed to be mandatory for <2 BTC/day withdrawals.

Apparently, this must not be absolute. Suspicions could probably override this and Binance could suddenly freeze accounts based merely on those suspicions. Unfortunately, that suspicion could easily arise from as simple a case as a change of IP address, which is very shallow a reason considering that the account is verified through email and even has an activated 2FA.

They need to stop advertising their "2 BTC a day" unverified account withdrawals then, as it is essentially false advertising. If something as simple as an IP address change can trigger their automatic "suspicions", then considering anybody can be assigned a new IP address at any time by their ISP, or the same user will have two completely different IP address if they access their account on WiFi or on mobile, then essentially any and every "unverified" account can be flagged for mandatory KYC at any time. Their whole "2 BTC for unverified accounts" is a lie when they can simply force you to verify anytime they like, and steal your coins if you don't.

OP isn't the first to be in this situation, and he won't be the last. Binance also aren't the first exchange to pull this scam, and also won't be the last. It's a shame that people never heed the warnings of others though. It usually takes someone to suffer a loss of their own coins before they realize just how scammy all the big centralized exchanges are. Even people who are verified and think "This would never happen to me" can and often do suddenly wake up to find that their chosen exchange has shut down their account because of some unspecified reason, they don't like where your coins come from or where they go, they don't like your activity, they want more info, they've banned your country, etc., etc.

I agree what you said. They must have either remove daily 2 BTC withdraw advertising or allow any user to do so. But they also have their terms and conditions. I know this is common issue regarding almost all the centralize exchanges. But this is the thought from our side.
If they find anything suspicious, they have the right to ask KYC even if user have lower amount of withdrawal than 2 BTC. We don't know the origin of the BTC nor we know anything about OP's side. It's possible that OP's BTC was not legal (just saying). In that case, don't Binance have the right to call for KYC? We don't know anything from exchange view.
Changing IP is not a suspicious activity all the time if it gets changed only a few times. Since OP has probably logged in from an IP which might be used by other as well before OP, I guess it's possible. In that case, if it's true, Binance must call OP for KYC since one person can use only one active account.

I don't want to defend Binance here, but I would look at the wide picture. It happened to me several times that accidentally try to log in on Binance through VPN, I did not have any problem after email and 2FA confirmation.
The only difference which I see here is OP use trading bot there, and maybe they can check his functionality. I would not rule out the possibility that is a bot turned his attention to unusual activities. which resulted in additional security checks.

Sure, they have the right to ask for KYC. But they do not have the right to hold your coins hostage and demand you provide it. If you refuse to provide KYC, then your coins should be returned to the address they were deposited from.

I don't think it should matter. Exchanges shouldn't even be looking in to where OP's money came from, let alone restricting his account because of it. They shouldn't be policing the crypto world.

Binance should be requiring KYC on all accounts and not letting anyone deposit before they have completed KYC. Allowing deposits but not withdrawals is scammy.

At least with banks, you can go to the agency and make a scandal until they release the funds, or contact a consumer association, and use justice.
Even if they decide to close an account they're forced to give back the funds

Currently, @OP is surely singing (https://www.youtube.com/watch?v=acoknuTpPOM) :D

It sucks, really! All these terms and conditions that are totally opposite to the very philosophy of Bitcoin. It seems these large crypto institutions themselves are the ones tearing down the very fundamental features of Bitcoin.  

Yes, this won't be the last case. That's for sure. Neither will Binance be the last of this kind of scammy site. Gambling sites come to mind first, marketing their non-KYC feature all around but ask players for it all of a sudden.


1. Unfortunately, the terms of use of Binance stipulates that:^[1]


This is of course a bit vague as a user might think that he/she could totally avoid this if he/she stays within the 2-BTC non-KYC limit. But then it appears to be a blanket condition to all accounts. And that particular request from Binance may unexpectedly arrive at your email inbox anytime.  

2. Returning the coins to the address they came from might not solve the problem. As a matter of fact, it might make it a little more complicated because that transaction might actually be a totally different one. For example, I sometimes give my Binance BTC address to some of my random BTC borrowers.

[1] https://www.binance.com/en/terms

I'm well aware of what their terms state. I'm not arguing that Binance shouldn't be allowed to ask for KYC - they are a centralized exchange and can place any demands they like in their Terms of Service. When you sign up to them, you accept those terms and at their mercy. What I'm arguing is that it is unethical and borderline scammy for Binance to continue to advertise their "2 BTC a day" unverified accounts when they clearly have no intention of fulfilling that promise in a significant number of cases.

A good analogy would be all the "free VPNs" that you see going around. Their Terms clearly state that they will collect all your data and sell it to third parties, ad companies, Google, etc., but their websites are covered with false claims of "enhancing your privacy" and "no logs". It's false advertising, and it's unethical.

Good News!  I was able to finally recover my funds.  It took almost 1 month!

I had to provide a video of my wallet showing the history of my first deposit I ever made to the exchange, which was about 6 months ago. 

Luckily I still had that wallet on my computer.

I usually use a fresh address for every BTC transaction, I think this contributed to their security flag aside from the IP change.

Thanks to the forum for giving individuals a platform to voice such concerns and its users for making it relevant.