How Bitstamp STEALS your money ...

[bitvio]

Hello bitcoiners, here is my horror story with Bitstamp:

Before this happened, I've used Mtgox for a while but they were having delays with SEPA transfers so I started looking for alternatives. I've heard that Bitstamp is ok so I signed up and moved some of my bitcoins to them. They happily accepted my coins and then they remained there untouched until a couple of weeks ago when I wanted to sell some ... and SURPRIZE !! I've discovered that their policy has changed and they require account verification for all withdrawals, including bitcoins. I've heard that it's perfectly reasonable to ask for that if you want to do transactions with banks, but I only want to pull my bitcoins back and close the account, without involving any banks.   Mtgox allows that without any problem ...

I said ok, I'll play by your rules and give you papers to prove my identity and address ... the problem is they constantly refused all the documents that I've sent without providing a reasonable explanation !! First I thought that I'm doing something wrong, but after a while I've realized that they simply do not have any interest to validate my account, it's easier for them to just say: "i don't like your document, go away! meanwhile your bitcoins belong to us".  

I do not know if it's BAD SUPPORT or they've actually STOLE MY BITCOINS, what is certain is that they now own my bitcoins and they don't give a fuck about me ... trust is very important in the bitcoin economy and BITSTAMP LOST MY TRUST !!  

How many out there had this bad experience and what should we do about it ?

TL;DR Bitstamp is using the verification (required by banks to do business with them) as an EXCUSE TO STEAL bitcoins from accounts that are unable to meet their impossible verification standards.

LATER EDIT: They eventually accepted my bank statement as proof of residence and my account is verified now ... but I still don't like that they've blocked access to my bitcoins!

[jfrenchy]

just out of curiosity, what exactly did you provide as documents to prove your identity?

also, it's kind of weird that any identification would be required for a BTC only withdrawal. you should be able to remain anonymous throughout, using a login/password scheme, at least until you start exchanging coins for real world currency.

btw, i've never used bitstamp

[bitvio]

I've sent my id card (i'm from Romania) and they seemed to be ok with that. On the other hand residence proof is much more complicated.

They accept paper utility bills (not electronic) sent to my name and my address or some form of local institution issued paper. I'm renting an apartment so utility bills don't have my name on them. Phone bill is on my name but it's electronic only. On the back of my id card the local police updates my residence address every year, i've sent them that but they refused it without explanation. I've sent my rent contract valid for entire 2013, they've also refused it because it was issued more then 3 months ago, WTF ... I can only validate an account during a 3 month window ?

Long story short, if you live in the 21st century and receive only electronic bills or rent an apartment and you don't have much paperwork on your name you're screwed! And if you've had some cash with them before enabling this policy ... you're double screwed!!

[iSnow]

Well, thank the US government for their KYC regulations. I guess Stamps hands are tied.

[Lauda]

Huh, this is odd. Did you send the proper documents.
Have you tried contacting/got an email why you were declined?

[MAbtc]

I've sent my id card (i'm from Romania) and they seemed to be ok with that. On the other hand residence proof is much more complicated.

They accept paper utility bills (not electronic) sent to my name and my address or some form of local institution issued paper. I'm renting an apartment so utility bills don't have my name on them. Phone bill is on my name but it's electronic only. On the back of my id card the local police updates my residence address every year, i've sent them that but they refused it without explanation. I've sent my rent contract valid for entire 2013, they've also refused it because it was issued more then 3 months ago, WTF ... I can only validate an account during a 3 month window ?

Long story short, if you live in the 21st century and receive only electronic bills or rent an apartment and you don't have much paperwork on your name you're screwed! And if you've had some cash with them before enabling this policy ... you're double screwed!!

Strange, I only receive electronic statements from my utility. It was fine for the purposes of verification on Bitstamp.

[hjordan]

I too had difficulty verifying my account before the deadline to continue using your account. All my bills etc are online. My online bank statement was refused. I emailed and explained that I only have online statements and I don't see what difference it makes and I was very polite. I then scanned the same document that was refused again and to my delight it was accepted the next day.
Can't you get a bank statement delivered?

[Wipeout2097]

The fact of the matter is that police and law needs to involved on these matters. I agree with the OP, an exchange holding funds this way is theft.

[Heaviside]

I then scanned the same document that was refused again and to my delight it was accepted the next day.

+1,
if refused, print and scan your phone bill, they should accept.

[hasher87]

why would they steal your money anyway

[Lauda]

why would they steal your money anyway

Yeah, they have no reason to damage their reputation for a small amount.

[bitvio]

why would they steal your money anyway

Yeah, they have no reason to damage their reputation for a small amount.

I thought so too, but they are throwing blame on regulations and expect to get away with that ... the thing is there are no regulations for bitcoin transfers! So nothing prevents them from allowing me to retrieve my bitcoins and close my account. Still they don't allow me to do that .... this is the shady part!

[Lethn]

Well I had a look at their About Us page and woh crap, they're based in the United Kingdom, would you mind saying what country your from? It may be they have some kind of stupid anti-terrorism law ( U.S style ) that means they have to block certain users from a different country which would explain why they've fucked off with your Bitcoins. I'm from the UK and I have a general knowledge of the kind of shit the banks pull with this and Bitstamp may have come to a ridiculous agreement with them in order to keep their business running.

The banks in the UK have also proven themselves to be very Bitcoin unfriendly and of course the politicians here tend to know fuck all about using computers and I will definitely think twice about selling my Bitcoins there if that's the kind of thing I can expect to go through. It is weird though because most people tend to have spoken quite well of them which is why I'm wondering if it's because of the country you're from or something.

[TheEmperor]

Well I had a look at their About Us page and woh crap, they're based in the United Kingdom, would you mind saying what country your from? It may be they have some kind of stupid anti-terrorism law ( U.S style ) that means they have to block certain users from a different country which would explain why they've fucked off with your Bitcoins. I'm from the UK and I have a general knowledge of the kind of shit the banks pull with this and Bitstamp may have come to a ridiculous agreement with them in order to keep their business running.

The banks in the UK have also proven themselves to be very Bitcoin unfriendly and of course the politicians here tend to know fuck all about using computers and I will definitely think twice about selling my Bitcoins there if that's the kind of thing I can expect to go through. It is weird though because most people tend to have spoken quite well of them which is why I'm wondering if it's because of the country you're from or something.

BitStamp has a UK office but their business and banking is in Slovenia I do believe.

And OP said he was from Romania, further up  

[electronistul]

BitVio, if you're looking to cash out BTCs let me know.
I had no issues with Stamp and I'm from the same country as you are (although i did provide them with a bill when they asked for it, took some week to confirm and after that it was all good).

We can trade fair & square if you'd like.

[bitvio]

Well I had a look at their About Us page and woh crap, they're based in the United Kingdom, would you mind saying what country your from? It may be they have some kind of stupid anti-terrorism law ( U.S style ) that means they have to block certain users from a different country which would explain why they've fucked off with your Bitcoins.

I'm from Romania and I don't think this in an issue. Romania is known for hackers though

[Seanzqt]

Hello bitcoiners, here is my horror story with Bitstamp:

Before this happened, I've used Mtgox for a while but they were having delays with SEPA transfers so I started looking for alternatives. I've heard that Bitstamp is ok so I signed up and moved some of my bitcoins to them. They happily accepted my coins and then they remained there untouched until a couple of weeks ago when I wanted to sell some ... and SURPRIZE !! I've discovered that their policy has changed and they require account verification for all withdrawals, including bitcoins. I've heard that it's perfectly reasonable to ask for that if you want to do transactions with banks, but I only want to pull my bitcoins back and close the account, without involving any banks.   Mtgox allows that without any problem ...

I said ok, I'll play by your rules and give you papers to prove my identity and address ... the problem is they constantly refused all the documents that I've sent without providing a reasonable explanation !! First I thought that I'm doing something wrong, but after a while I've realized that they simply do not have any interest to validate my account, it's easier for them to just say: "i don't like your document, go away! meanwhile your bitcoins belong to us".  

I do not know if it's BAD SUPPORT or they've actually STOLE MY BITCOINS, what is certain is that they now own my bitcoins and they don't give a fuck about me ... trust is very important in the bitcoin economy and BITSTAMP LOST MY TRUST !!  

How many out there had this bad experience and what should we do about it ?

TL;DR Bitstamp is using the verification (required by banks to do business with them) as an EXCUSE TO STEAL bitcoins from accounts that are unable to meet their impossible verification standards.

Mt.Gox requires this verification, so does Bit Stamp, and so does many others I have come across lately - so it be unfortunate.

[elasticband]

i sent them a copy of my passport and a copy of a bill from my electric company from last month, verification refused.

Maybe it's because the electricity bill has the equivalent of Mr E. Band on it, so not my full name? if this is so, it is going to be a pain.....

I luckily don't have any funds in my account though

[Abdussamad]

Verify first. Deposit money later. That way you never get surprised with new "rules".

[Lethn]

lol oops sorry guys, I read the post when I was tired, that's weird, have you asked them what they require? You have already tried sending the standard stuff right? I'm just really baffled by all this behaviour, normally you'd just send in a drivers license or a passport scan and that would be the end of it.