BitFinex has frozen my unverified cryptotrading account containing xxxxx USD!!

[NeedHelpWithBitfinex]

Hello Reddit & Bitcointalkers!

I have been using Bitfinex since the beginning of their launch and never had a single problem. Was lucky enough to not store any bitcoins when the hack happened. I've used Bitfinex for a long time as a wallet provider aswell, because I trusted them enough and they do not enforce AML/KYC on accounts that only engage with cryptocurrency. With the easy interface and 24/7 internet access I thought it's convenient. I've been using my newly created account(s) for storing my bitcoins (depositing & withdrawing) aswell as trading during the latest 3 years. This have NEVER, EVER, been an issue before. Never! And that's simply because they only need a verified status of someone that would like to deposit or withdraw fiat.

Until a few days ago. All of a sudden, they won't process my bitcoin withdrawals which is worth thousands of dollars. Even tho I only stayed with crypto. Instead they sent me a quite bizarre and privacy invasive list of questions they want answered:

Your account activity has raised some concerns.

We require more information in order to verify your identity, the source of these funds, and to understand your account history and objectives. Accordingly, please provide us with the following as soon as possible:

• a color copy of your current passport picture & facing pages, or other valid, unexpired, government-issued photo ID showing citizenship;
• a copy of a utility bill in your name showing your current address;
• a high resolution picture of you holding your passport (or other government ID) open to the picture page;
• a high resolution picture of you holding a copy of this e-mail message;
• a detailed explanation of the sources of all funds deposited to Bitfinex;
• identification of the owner(s) of the wallets to which transfers have been made to your Bitfinex account;
• identification of the owner(s) of the wallets to which transfers have been made from your Bitfinex addresses; and
• reasons for transfers from and to your Bitfinex account;

Please send us this information as soon as possible. We reserve the right to require further particulars and documentation from you.

Thank you for your anticipated co-operation,

How come they all of a sudden enforce AML/KYC on an account that's only using cryptocurrency and not any fiat at all? Once again. I have been doing this for 3 years. And there was never any problems. I asked this and he replied:

    Bitfinex may perform enhanced customer due diligence procedures. At all times, you may be subject to enhanced customer due diligence procedures.

Maybe that's right. But this can only be applied to users with a verified status. This cannot be applied to people who only stay within crypto. There is no logic behind this at all.

Questions:

• How long are they able to freeze my assets by law? There got to be a reasonable timeframe.
• How much "details" about the source of all funds deposited Bitfinex do they really need?
• Is it possible to transfer the assets to a lawyer via an agreement between me and him, who then goes through with the whole procedure?

No. It's not about "Just do what you are told.". I stayed with cryptocurrency only on Bitfinex and never did anything wrong at all. These bitcoins simply belong to me. I am well aware when and why AML/KYC is needed. This is not such case. I believe in privacy which is the reason I use bitcoin. Since this have never been an issue during the latest years (i.e I am well within their terms & policy), how come it is now?

I do not like conspiracys but this seems like an easy way to fund the loss from the latest hack to be honest. I will however not give up that easily. Will update you all as soon as they answer my questions or process my withdrawals. Maybe I will comply with their questions. But I would like to know my rights first and if this is legal.

Thanks in advance,
NeedHelpWithBitfinex

ps. I have everything documented if evidence is needed.

[tee-rex]

It looks like they are in an urgent need of ready money, and locking accounts worthy of thousands of dollars seems to be one of the ways to provide the required liquidity to themselves. I think they will return you your money in the end, but it may take some time. It is strange though that you continued to hold the money at Bitfinex after the hack. The writing was in big red capital letters across the wall.

[NeedHelpWithBitfinex]

It looks like they are in an urgent need of ready money, and locking accounts worthy of thousands of dollars seems to be one of the ways to provide the required liquidity to themselves. I think they will return you your money in the end, but it may take some time. It is strange though that you continued to hold the money at Bitfinex after the hack. The writing was in big red capital letters across the wall.

That might be the case. Horrible if it is. Hopefully they will return all my assets. But I somehow have a strange feeling they won't and they will keep sending more and more questions. We will see, hehe.

You are right. But prior to the hack, Bitfinex had never disappointed. Always worked 110% flawless. And that's for a few years of time which I find quite amazing. Fast response time, quick deposit & withdrawal, awesome features in the trading engine etc. After the hack I really thought they will never have any problems again. Since it will only hurt their credibility they are slowly building up again.

This was for sure a little wake-up-call for me

[tee-rex]

It looks like they are in an urgent need of ready money, and locking accounts worthy of thousands of dollars seems to be one of the ways to provide the required liquidity to themselves. I think they will return you your money in the end, but it may take some time. It is strange though that you continued to hold the money at Bitfinex after the hack. The writing was in big red capital letters across the wall.

That might be the case. Horrible if it is. Hopefully they will return all my assets. But I somehow have a strange feeling they won't and they will keep sending more and more questions. We will see, hehe.

You are right. But prior to the hack, Bitfinex had never disappointed. Always worked 110% flawless. And that's for a few years of time which I find quite amazing. Fast response time, quick deposit & withdrawal, awesome features in the trading engine etc. After the hack I really thought they will never have any problems again. Since it will only hurt their credibility they are slowly building up again.

This was for sure a little wake-up-call for me

I don't think you could actually hope for or rely on your "rights" in this case. Let alone think if they are legal or not. That's the last thing that I would care about in your place, for the simple reason that they themselves didn't have any right to distribute losses incurred due to hack among users in the first place, since it was their fault, not their clients. After they had done this, it had become only a matter of time until they started locking accounts with money under any allegedly legitimate pretext.

That should become a true wake-up call for anyone still keeping money at Bitfinex.

[Chris!]

Xx,xxxx doesn't really make sense. Is it xxx,xxx or xx,xxx (for example 100,000 or 10,000)?

Either way this is why I wouldn't ever keep anything on an exchange ever. Why trust a third party with your money? They could always just say you were using it for something illegal and now they own your bitcoins

[greatwolf_]

Can you respond to what zane is talking about here? https://www.reddit.com/r/Bitcoin/comments/56t9d4/bitfinex_has_frozen_my_unverified_cryptotrading/d8mi6s2

What did he mean by you not sharing the whole story?

[NeedHelpWithBitfinex]

It looks like they are in an urgent need of ready money, and locking accounts worthy of thousands of dollars seems to be one of the ways to provide the required liquidity to themselves. I think they will return you your money in the end, but it may take some time. It is strange though that you continued to hold the money at Bitfinex after the hack. The writing was in big red capital letters across the wall.

That might be the case. Horrible if it is. Hopefully they will return all my assets. But I somehow have a strange feeling they won't and they will keep sending more and more questions. We will see, hehe.

You are right. But prior to the hack, Bitfinex had never disappointed. Always worked 110% flawless. And that's for a few years of time which I find quite amazing. Fast response time, quick deposit & withdrawal, awesome features in the trading engine etc. After the hack I really thought they will never have any problems again. Since it will only hurt their credibility they are slowly building up again.

This was for sure a little wake-up-call for me

I don't think you could actually hope for or rely on your "rights" in this case. Let alone think if they are legal or not. That's the last thing that I would care about in your place, for the simple reason that they themselves didn't have any right to distribute losses incurred due to hack among users in the first place, since it was their fault, not their clients. After they had done this, it had become only a matter of time until they started locking accounts with money under any allegedly legitimate pretext.

That should become a true wake-up call for anyone still keeping money at Bitfinex.

Scary thought Fingers crossed...

Xx,xxxx doesn't really make sense. Is it xxx,xxx or xx,xxx (for example 100,000 or 10,000)?

Either way this is why I wouldn't ever keep anything on an exchange ever. Why trust a third party with your money? They could always just say you were using it for something illegal and now they own your bitcoins

Well. I believe it shouldn't even matter now when I think about it . The fact is that Bitfinex have frozen money although all I used was crypto. No fiat. It could be 10.000 USD or 500.000 USD. This does not matter and is not the problem. The problem is that I have done this for a long time. And now, after the hack, they all of a sudden decide to freeze assets and force verifications which I guess is concerning to more than just me. Probably the whole bitcoin community as a whole. The sum shouldn't change anything in my book. It was actually an X too much. Embarassing. xxxxx USD.

You are right. I guess I got too comfortable with my trust.

Can you respond to what zane is talking about here? https://www.reddit.com/r/Bitcoin/comments/56t9d4/bitfinex_has_frozen_my_unverified_cryptotrading/d8mi6s2

What did he mean by you not sharing the whole story?

The "whole story" that Zane is talking about is simply that I care about freedom and privacy which means I will always use Tor browser whenever I do something online. Because I believe in freedom. But let's skip the politics. What also made them suspicious is the fact that I only used them as wallet provider which made them think (according to their latest email received today) I am mixing my bitcoins through them. For me this theory is a bit farfetched since sole mixers as can be read about here: https://en.bitcoin.it/wiki/Mixing_service ẅould probalby do a far better job than an exchange who of course collaborates with the police....?! Just simple blockchain browsing can locate Bitfinex hot and cold storage for god sake. But after the hack I guess they are a bit paranoid about every user which I guess I respect to some degree.

This is what have happened. I am sure anyone would get frickin worried. Especially since Bitfinex never had these routines before. Only after the hack.

[tee-rex]

It looks like they are in an urgent need of ready money, and locking accounts worthy of thousands of dollars seems to be one of the ways to provide the required liquidity to themselves. I think they will return you your money in the end, but it may take some time. It is strange though that you continued to hold the money at Bitfinex after the hack. The writing was in big red capital letters across the wall.

That might be the case. Horrible if it is. Hopefully they will return all my assets. But I somehow have a strange feeling they won't and they will keep sending more and more questions. We will see, hehe.

You are right. But prior to the hack, Bitfinex had never disappointed. Always worked 110% flawless. And that's for a few years of time which I find quite amazing. Fast response time, quick deposit & withdrawal, awesome features in the trading engine etc. After the hack I really thought they will never have any problems again. Since it will only hurt their credibility they are slowly building up again.

This was for sure a little wake-up-call for me

I don't think you could actually hope for or rely on your "rights" in this case. Let alone think if they are legal or not. That's the last thing that I would care about in your place, for the simple reason that they themselves didn't have any right to distribute losses incurred due to hack among users in the first place, since it was their fault, not their clients. After they had done this, it had become only a matter of time until they started locking accounts with money under any allegedly legitimate pretext.

That should become a true wake-up call for anyone still keeping money at Bitfinex.

Scary thought Fingers crossed...

Xx,xxxx doesn't really make sense. Is it xxx,xxx or xx,xxx (for example 100,000 or 10,000)?

Either way this is why I wouldn't ever keep anything on an exchange ever. Why trust a third party with your money? They could always just say you were using it for something illegal and now they own your bitcoins

Well. I believe it shouldn't even matter now when I think about it . The fact is that Bitfinex have frozen money although all I used was crypto. No fiat. It could be 10.000 USD or 500.000 USD. This does not matter and is not the problem. The problem is that I have done this for a long time. And now, after the hack, they all of a sudden decide to freeze assets and force verifications which I guess is concerning to more than just me. Probably the whole bitcoin community as a whole. The sum shouldn't change anything in my book. It was actually an X too much. Embarassing. xxxxx USD

When Cryptsy scammed on their clients a year ago, they also ended up with something along these lines. For example, when you tried to login to your account, they asked for a secret question even if you had none set. I also failed to login, but since I had withdrawn all my funds before, I didn't care much and just told them to GTFO.

Somewhere across the forum there is a thread which reveals the sequence of events in full detail as they had been unwinding, with Cryptsy reps at first claiming that they are unaware of any issues, then trying to bully their clients, and finally simply disappearing when confronted with irresistible proofs.

[NeedHelpWithBitfinex]

Just wanted to update that I will go through with the verification process since they apparently have the right to identify any suspicious user. And there does not seem to be a way around this. So I guess I have to swallow my pride and go ahead with it .

Currently awaiting a reply from the support regarding the list and then I will try to submit everything needed. Will update once it is done

[tee-rex]

Just wanted to update that I will go through with the verification process since they apparently have the right to identify any suspicious user. And there does not seem to be a way around this. So I guess I have to swallow my pride and go ahead with it .

Once you get your money back, withdraw it immediately! You may be tempted to continue holding your funds at Bitfinex falling a victim to a sort of Stockholm Syndrome, but don't have any illusions about their "rights". Their only "right" right now is to return the stolen funds to their clients.

Good luck to you and keep us updated!

[NeedHelpWithBitfinex]

Just wanted to update that I will go through with the verification process since they apparently have the right to identify any suspicious user. And there does not seem to be a way around this. So I guess I have to swallow my pride and go ahead with it .

Once you get your money back, withdraw it immediately! You may be tempted to continue holding your funds at Bitfinex falling a victim to a sort of Stockholm Syndrome, but don't have any illusions about their "rights". Their only "right" right now is to return the stolen funds to their clients.

Good luck to you and keep us updated!

Thanks a lot for your support! I have now submitted all the documents, photos, information that prove my identity. Hopefully it is enough and Bitfinex will let me go ahead with my bitcoins. Fingers crossed!

[Superzpay]

That is the reason everyone here suggest not to store your fiat or bitcoin for longer even for a day on any exchange .Try to keep all your bitcoins away from those service providers which will have issues like that, But it is the issue only of verification when you will verify it you will get your money.

[NeedHelpWithBitfinex]

Since its been 1 week since the last update I thought I should give you an update again: Nothing yet. They however informed me 21/10 Bitfinex is now reviewing the case/details which is a good sign. Hopefully they will release my funds during the beginning of next week once they have confirmed my documents. Fingers crossed!

[tee-rex]

Since its been 1 week since the last update I thought I should give you an update again: Nothing yet. They however informed me 21/10 Bitfinex is now reviewing the case/details which is a good sign. Hopefully they will release my funds during the beginning of next week once they have confirmed my documents. Fingers crossed!

Did they tell you how long they were going to "review" your papers? If they didn't, ask them how long it usually takes. At other exchanges it is a matter of days, sometimes even hours. At one exchanger I was verified within minutes after submitting my docs (dunno if they actually verified anything, though). The longest I've seen was at PayPal, but even there it took only two or three days, if I remember correctly.

[NeedHelpWithBitfinex]

Since its been 1 week since the last update I thought I should give you an update again: Nothing yet. They however informed me 21/10 Bitfinex is now reviewing the case/details which is a good sign. Hopefully they will release my funds during the beginning of next week once they have confirmed my documents. Fingers crossed!

Did they tell you how long they were going to "review" your papers? If they didn't, ask them how long it usually takes. At other exchanges it is a matter of days, sometimes even hours. At one exchanger I was verified within minutes after submitting my docs (dunno if they actually verified anything, though). The longest I've seen was at PayPal, but even there it took only two or three days, if I remember correctly.

Thanks for your reply.

Unfortunately they did not. But I guess it should take 2-3 days from the date they started which means it should be done tomorrow or Tuesday at the latest. Or Wednesday if they dont work on weekends.

Since some people had questions about "what really happened", I made a post with a more detailed descrption on Reddit. It can be seen here: https://www.reddit.com/r/Bitcoin/comments/56t9d4/bitfinex_has_frozen_my_unverified_cryptotrading/d8zlb6d/

Or:

The exact circumstance is the following: I have, with Tor (never been an issue and not according to Zane either), registered a total of 6 Bitfinex accounts where I put in equal amount of BTC (+/- 1 or 2 BTC) to store as seperate vaults instead of everything at one place. Yes. Everyone would call me stupid for using an exchange as a wallet provider but lets not get into that now . Its just so much easier to have online access. And yes. I am aware an exchange can get hacked etc. I dont imagine it can happen AGAIN however.

Around 8-9 hours after the deposits were made I decided to request a withdrawal for some bitcoins. Bitfinex have a problem with this because they dont want people to use Bitfinex as a mixer (which was never my intent... I just needed some of my assets which is why i wanted to withdraw). Fine. I understand that.

The address I sent the bitcoins to, were all fresh with 0 history. Which also made them think i sent them To a mixer. But that is wrong. Its actually going to a Localbitcoin address (which I have screenshoted of course). They also did not like that the address before reaching the deposit address were only showing activity hours before the deposit was made. However. I was able to sign addresses that were used Prior to them as well (which shows older activity date)... If that makes sense.

Because of this, which of course might look suspicious, they wanted me to verify my identity. Which I did 3-4 days ago (depending on the time zone). Attached lots of photos. My passport, national ID (front & back), me holding both separately, me holding the email of their requirements, the email along with my passport & ID, utility bill in english, a bill in my language, receipt from paying the utility bill, screens from all the localbitcoins accounts showing the same addresses i requested withdrawals too and an explanation of the above.

Now I am waiting for a reply. Quite nervous since it was roughly 138 BTC in total. I only managed to withdraw around 11.9% before they froze my ability to withdraw and needed to verify me. Bfx has for a long time been me and my friends go to exchange. A bit shocked and sad this happened. But hopefully it will get solved by this simple verification.

This is pretty much what happened. The only reason I didn't wanted to show emails were because I thought i was too personal in them. But this is what happened. Feel free to add any details I missed out Zane.

Anyone knows how long a verification process normally take with Bitfinex? Or where they are located/what time it is in the Bitfinex office right now? Maybe I am stressing out too much... But it stresses my whole body so bad that they wont reply at all after I now have proved my identity. Just say something please. Just the thought of Bfx got hacked and now maybe do not care so much about their users scares me so so much

Fingers crossed... Thanks in advance!

ps. Sorry if i am overthinking it and maybe just simply need to be patient.. Maybe they are looking into it already. Maybe they have a backlog. Maybe the Sunday doesnt count since its holiday. Would love to know an estimated time when i will be able to access my funds.

ps. Sorry for the bad English.

[frei.sein]

Thanks for telling me. I will stop using Bitfinex. And look for a better platform.

I got scammed by localbitcoins, they just freeze my account and don't unfreeze it. They have stolen my BTC.
If somebody knows how to withdrawal BTC from frozen account let me know.

Thank you!

[Bitcoin_Arena]

Thanks for telling me. I will stop using Bitfinex. And look for a better platform.

I got scammed by localbitcoins, they just freeze my account and don't unfreeze it. They have stolen my BTC.
If somebody knows how to withdrawal BTC from frozen account let me know.

Thank you!

There is always a reason they freeze Bitcoins in accounts, the most common reasons are KYC verification and suspicious transactions. What are they asking you to do in order to unfreeze your account?

If they are asking for KYC in order to verify your account, then you have no choice but send them documents to unlock your account and once you get access to your money, withdraw all of it and never ever use Local bitcoins again, there are good alternatives like Localcryptos