I wish one of the
https://wallofcoins.com users would post "How I lost $8000 selling on Paxful". In fact, I'll see if he has a bitcointalk.org account....
Soon we can expect such a post. Even a topic might get initiated " I lost certain dollar using PAXFUL ". Any suggestions or support to get back the lost bitcoins worth of some dollars.
I do not like such stories, and certainly I will not be trying this method. However, i'm interested what the threat might be to use the PAXFUL service?
How would anyone lose money whilst using their services? Are you suggesting that the whole project is a scam?
No one likes these stories. It sucks. This is how he lost the money: someone did an order with him to buy bitcoin, and the cash amount was $8000. The buyer turned out to be some cash scammer who convinced someone that they were buying a car on ebay--convinced them to deposit $8000 into his Wells Fargo account to pay for the buyer's bitcoin. Paxful doesn't have (or didn't have) protections against this--especially when experienced cash traders *know* that Wells Fargo tellers can and will return the cash to the buyer if they believe the buyer was scammed. And that's exactly what happened: after he told Paxful the order was paid for and the buyer got the coins, Wells Fargo gave the cash back to the customer.
Nothing like this has *ever* happened on Wall of Coins and we've been running strong >18 months serving the bitcoin community. We are very aware of this and have implemented a software security intelligence layer and strong businesses process to prevent such things. I'm just venting, because I wish other companies would put the security of their users first. The customer who lost $8000 using Paxful contacted me, frustrated with this happening on their platform and desperate to find out if there was anything he could do. I gave him the bad news, and he found out shortly that Wells Fargo was terminating his account
People reading this should just learn from what happened to him.