Coinbase Closed Account Investigation

[cherrysodax]

Received the standard email for when coinbase closes your account. Most people are gonna say “I didn’t do anything” “I was working with stocks” BS. Assuming one was using a DNM, does coinbase report to law enforcment after closing your account?

In this example, the last transactions were 3 years ago, and no more than $200- $300 total, though though there was a small transaction (<$10) a few months ago that may have ticked it off as it wasn’t sent to another wallet first.

[gentlemand]

does coinbase report to law enforcment after closing your account?

I can't imagine they'd bother reporting you for something that requires detective work and proof on their part. That's not their job and not their problem. If you have a known dark market transaction they may keep it on file but I assume law enforcement comes to them with a specific crime to link to you.

Other than that they would simply prefer you to go away.

[hello_good_sir]

Received the standard email for when coinbase closes your account. Most people are gonna say “I didn’t do anything” “I was working with stocks” BS. Assuming one was using a DNM, does coinbase report to law enforcment after closing your account?

In this example, the last transactions were 3 years ago, and no more than $200- $300 total, though though there was a small transaction (<$10) a few months ago that may have ticked it off as it wasn’t sent to another wallet first.

How would they know the transaction (I'm assuming the 10 dollar one a couple of months ago) was a dark net transaction? I find it very confusing and honestly a waste of time that a company like Coinbase would look at 10 dollar transactions and try to track them.

How much money did you have in the account? Was it just confiscated and did they tell you anything about those funds, or what they were going to do next (contact police, etc)? As Gentlemand said it's impossible to track every darknet transaction and I doubt they could have a huge influence on things and it would be stupid for them to try and go after you with their information.

[cherrysodax]

“ Hello,

Thank you for your interest in Coinbase. Our primary goal is to make digital currency safe and secure for our customers. Coinbase is a regulated Money Services Business under FinCEN (FinCEN.gov), and as part of achieving this goal, we are legally obligated to implement regulatory compliance mechanisms.

Upon careful review, we believe your account has engaged in prohibited use in violation of our Terms of Service and we regret to inform you that we can no longer provide you with access to our service. We respectfully request that you follow the on-screen instructions presented when you sign in to your Coinbase account to send any remaining balance offsite to an external address.

Should you have any questions or need assistance, please let us know and we'll be happy to help.”

It’s the standard email they send out to everybody whenever they close your account. There was no money in the account (couple pennies), but they let you transfer it out if you do.

They do track transactions, how they know what those transactions are for I have no idea. Some kid on reddit got closed after they “had evidence of cannabis transactions” though was never met with any legal trouble. I’m not even going to bother emailing support about what evidence they have because 99% of the time they say they “can’t disclose what they have.”

Obviously I’m not worried about the $10 but more so about the couple hundred bucks from 3 years ago. Read something about them possibly filing SAR’s with FinCED, though in writing this it feels more like overthinking.

[bitmover]

I agree with gentlemand. They are not going to report to anyone unless they are obligated, i.e., if they find something very illegal in your activity/transactions.

Unless you did something criminal with your BTC, I believe there isn't much to worry about.

[FIFA worldcup]

I agree with gentlemand. They are not going to report to anyone unless they are obligated, i.e., if they find something very illegal in your activity/transactions.

Unless you did something criminal with your BTC, I believe there isn't much to worry about.

How they know if they anyone have done any criminal activities with bitcoin ? Do they track the source ? I remember the XAPO uses to close the account if they find that the bitcoin are received from gambling site. Do coinbase follow the same guidelines ?

[gentlemand]

How they know if they anyone have done any criminal activities with bitcoin ? Do they track the source ? I remember the XAPO uses to close the account if they find that the bitcoin are received from gambling site. Do coinbase follow the same guidelines ?

Bitcoin's super easy to trace. There'll be known addresses for gambling sites and dark market stuff which I assume they'll have automated alerts about. No US based operation will allow unsanctioned gambling transactions.

The most extreme case I've seen was Coinmama telling someone to go away with a gambling transaction that was about 15 tx's ago.

[cherrysodax]

I agree with gentlemand. They are not going to report to anyone unless they are obligated, i.e., if they find something very illegal in your activity/transactions.

Unless you did something criminal with your BTC, I believe there isn't much to worry about.

Using a dark net market is criminal

[1Referee]

Using a dark net market is criminal

That isn't always true because not everything listed on dark net markets is illegal.

In most cases people using dark net markets are just buying psychedelics, which I personally have no problems with. I'm pretty sure that authorities are well aware that only a very small percentage of the conducted transactions on dark net markets involve ID fraud, credit card fraud, weapons, etc.

It's the mainstream media that comes up with money laundering, terrorism, etc. Most people who are technically clever enough to use a dark net market know very well that they shouldn't mess with any of that while using Bitcoin, and they very likely don't. That's what the us dollar is for. 

It's way more likely that the physical cash you hold in your purse is used to conduct actually illegal transactions offline, but no one seems to care because it's fiat.