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Author Topic: Changelly - FAKE KYC/AML  (Read 112 times)
moneroexchanger
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April 11, 2018, 06:44:36 PM
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For the past few days changelly has implemented new draconian KYC and AML rules that extort users into sending personal information or lose their money (good profit for changelly). There are posts all over reddit about this

Not only do they not allow you to cancel your transaction (like XAPO etc all over exchanges) after you send in your documents it will take weeks if not forever for verification. This is 100% money grabbing scheme.

r/Changelly/comments/8bbxr7/changelly_failed_transaction_for_3_btc_20k_stole/

r/Changelly/comments/88xyko/suddenly_changelly_requires_a_kyc_aml_procedure/

r/Changelly/comments/802z1d/call_for_changelly_victims_tell_your_story_see/ (this guy lost over $1m worth of ETHER)

PS: They do not warn users about the document requirements before you do the transaction and according to their team there is no way to get your money back. They are making excellent profit off this

EDIT 1:

Changelly said this: "We value our customers’ anonymity, so we ask for KYC only if the transaction is detected as suspicious. Besides, the user will see the warning about transaction being subject for KYC check before the final step of the transaction. We are transparent and straightforward about our intentions."

The support team are very misinformed, there is no warning whatsoever and I invite you all to check for yourself. I created multiple new orders with very high amounts, no warning. This is a blatant lie.

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magneto
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April 11, 2018, 10:35:00 PM
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This is 100% bullishit.

Their business model is literally to provide a service to people who don't want to conduct the KYC on big exchanges. Otherwise, people would just use the exchanges themselves instead of changelly. They're even asking for proof of the funds being legitimately obtained or something based on the reddit topics? That's crazy.

You don't see shapeshift asking for ID, at least I'm not aware of.

IMO that just takes away the only reason you would use Changelly. Not the first time they've done something shady(previously they held up deposits for ages before actually releasing the altcoins). It seems to be just a way to get free money for them.

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April 12, 2018, 05:22:08 PM
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IMO that just takes away the only reason you would use Changelly. Not the first time they've done something shady(previously they held up deposits for ages before actually releasing the altcoins). It seems to be just a way to get free money for them.
Changelly has had many scam accusations. How about the time they charged 80% in fees because they used many small inputs to pay out in Bitcoin?
The only reason I ever had to use them, was for coins not supported by Shapeshift. I won't do that again.

Changelly has red trust already. Their "Untrusted feedback" has much more red too.

The Pharmacist
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April 12, 2018, 05:31:33 PM
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Their business model is literally to provide a service to people who don't want to conduct the KYC on big exchanges.
I agree, but they may not have a choice.  Plus I would add that Shapeshift already banned user in the US, so that must have cut down on their business considerably--Changelly may not want to lose all the US customers.  Who knows.

This sucks, but I could see this coming for a while now.  There's no way governments are going to sit back and let people just do what they want with their money.  It is indeed bullshit, but not unexpected at all.  I have used both services, though, and they're both damn good ones.  I never experienced those crazy-ass fees that people are mentioning, but I've dealt in pretty small amounts.

From my own selfish perspective, I'm happy I have no need for altcoins at this point.  The KYC stuff is nightmarish and yes, draconian.

Edit:  I just used Changelly last night, and they didn't ask for any KYC documents.  Again, it was a small amount that I converted (<$200).  This is good, since I have no interest in providing documentation to anyone for crypto transactions.  I know it's coming, but....

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April 13, 2018, 10:45:03 PM
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They can literally deem anything as suspicious, there's no guidelines as what is considered to be "suspicious". They need to actually tell you before you exchange your funds whether KYC/AML procedures will run on you. A lot of people would not even use Changelly if you need draconian levels of verification. It could be because of US regulations, and as The Pharmacist said, they probably don't want to lose such a huge market share. But doesn't mean that they are also taking advantage of this by selectively flagging big transactions to be able to hold customer funds for longer than normal.

Changelly already has a lot of negative reviews, and IMO isn't to be trusted based on their previous track record.

Changelly has had many scam accusations. How about the time they charged 80% in fees because they used many small inputs to pay out in Bitcoin?
The only reason I ever had to use them, was for coins not supported by Shapeshift. I won't do that again.

Changelly has red trust already. Their "Untrusted feedback" has much more red too.

Yeah, I guess the only reason why you would use Changelly is if shapeshift wasn't available in your country, or a coin isn't supported by shapeshift. But if you need to get verified for a changelly transaction, just use any major exchanges. You'll get way better rates, as well.

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April 17, 2018, 03:33:25 PM
 #6

Dear fellows,

We understand your frustrations, but the KYC procedure is meant to protect our users from fraud activities.
Unfortunately, Monero attracts numerous criminals who try to cover their tracks by converting funds to XMR, as it hides a sender and recipient. Due to scammy activities recently took place in Monero, we have to be sure that funds are not fraudulently obtained. We have implemented an alert to warn our users who want make big exchanges which inludes an information that their transaction can be put on hold and that they will have to provide documents required for European KYC/AML directives and regulations.
Please note, that most of the exchanges are processed regularly and are still anonymous.
We appreciate any cooperation.

https://Changelly.com - instant cryptocurrency exchange!
LoyceV
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April 17, 2018, 04:33:03 PM
 #7

We understand your frustrations
What are you going to do for the people who already have their funds stuck waiting for KYC, and don't want to reveal their identity? Will you return their coins?

Quote
Unfortunately, Monero attracts numerous criminals who try to cover their tracks by converting funds to XMR, as it hides a sender and recipient.
Asking KYC for an anonymous coin goes against everything that coin is used for.

Quote
We have implemented an alert to warn our users who want make big exchanges which inludes an information that their transaction can be put on hold
Let me test that: convert 1212 XMR into Bitcoin:
Code:
ESTIMATED ARRIVAL ≈ 5-30 minutes
Code:
Send 1,212 XMR to the address below
Is a quarter million dollars not enough to require KYC? Or do you only require that the other way around?

When I try to convert 30 Bitcoin into XMR, I get this:
Loading image...

Quote
~and that they will have to provide documents required for European KYC/AML directives and regulations.
I'm pretty sure the EU KYC/AML directives have nothing to do with Monero in particular, and I can't imagine it allows large anonymous transactions from BTC into XMR.

timerland
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April 17, 2018, 10:12:18 PM
 #8

I can confirm LoyceV's concerns. I tried to exchange 5 BTC to ETH, and there was no check box for potential AML/KYC whatsoever. Again, you only implemented this alert system a while ago, so what are you going to do with the people who exchanged funds with you guys and did not receive that warning? Are you going to refund them?

Also, are the KYC procedures only carried out on transactions above a certain threshold, or do they just apply randomly?

If you guys have any sort of system to determine which transactions are required to give KYC, you should definitely publish the limits until one is required to get verified. That is only fair to the customer, especially if his goal is to exchange with anonymity in the first place.

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