Bitfinex blocks withdraws

[mr.relax]

With the excuse of suddenly asking for KYC of unverified accounts,
Bitfinex is locking tons of funds.
They ask anything like proof of source of funds, proof of personal income, and so on,
explanations of each transaction(which is impossible for active traders).
I started to trade there because they did NOT ask for KYC.
It was also explicit allowed to send  from/to cryptoaddresses, you dont control!

I am aware that many,many accounts are recently blocked from withdraw.
g.e. https://www.reddit.com/r/bitfinex/comments/by15zs/bitfinex_is_locking_accounts/
If you search, you find a lot of reports...

Well I am a victim too.
Take care, they can use any excuse for not to pay out anymore.
It seems as if Bitfinex is really in trouble and starts to fuck selected customers.
Somehow this remembers me to the beginning of the end of BTC-e.

Can only recommend not to send anything anymore to Bitfinex until this reports of abusing users stops.

[1714949033]

1714949033

[AdolfinWolf]

Huh. I always thought Bitfinex was like coinbase considering you could withdraw to your bank accounts?

Could you, up till today, withdraw to bank accounts?

I've never used them so i don't know, but that would be strange considering all the regulations that were forced on Bittrex, Poloniex, who were only crypto -> crypto.


Anyway, companies that claim to offer a KYC-free experience (or don't mention it), only to then subject the user to it, are scum. Plain and simple.

[leowonderful]

I didn't know it was possible to trade on Bitfinex without KYC in the first place, considering nobody's really mentioned it to me (perhaps for a good reason considering the hacks and news about them now and in the past). Just read the Verification section of their FAQ and it does seem like they can ask for verification if they claim something raises 'flags', though I do agree that this is extremely scummy as well. Reminds me of crypto casinos that only ask for KYC upon withdrawal but are open to deposits without KYC.

Link to where this is quoted from: https://support.bitfinex.com/hc/en-us/articles/115003424209-Verification-Frequently-Asked-Questions

Do I need to verify my account to start trading?

No, you do not need to verify your account to start trading on Bitfinex. Verification is only required for users wishing to deposit/withdraw fiat currencies (e.g. USD), and for users who wish to speed up the deposit process. Users wishing to deposit/trade/withdraw cryptocurrencies are not required to verify their account. However, as per our Terms of Service, we reserve the right to ask for KYC information at any point in time if your account activity raises flags.  

[Slow death]

With the excuse of suddenly asking for KYC of unverified accounts,
Bitfinex is locking tons of funds.

maybe with that they intend to have funds to pay lawyers to defend them

Bitfinex and Tether Double Down on Claim of No Customers in New York

Metropolitan Commercial Bank Shuts Down Tether’s Accounts

or they want to show the authorities that they comply with KYC so they are responsible and serious, but I believe it only makes their situation worse, which is not good for them

[BitHodler]

Huh. I always thought Bitfinex was like coinbase considering you could withdraw to your bank accounts?

Not even close. Bitfinex has been selectively allowing a small portion of their clientele cash out to fiat while the rest is either subjected to random verification or fiat withdrawals that never go through.

It has been like this for almost two years now so it's definitely not new. I wouldn't recommend anyone to use Bitfinex with solid alternatives such as Coinbase Pro, Bitstamp, Gemini and Kraken having a great trackrecord.

In the last 6-12 months people have withdrawn over 100k in BTC from Bitfinex because they no longer trust it. These are smart people avoiding future problems.

[joniboini]

As far as I remember Bitfinex already screw up from the beginning of last year when they started pending user withdrawal, removing complains from Reddit and so on. The tether issue seems real even until today, which is why it's such a risky move if you use them.

OP case is definitely not the first, and probably not the last one either. Their KYC request could also be a tactic to prolong user withdrawal so they can get some funds first.

[o_e_l_e_o]

Bitfinex and Tether are borderline criminal operations at this point. Tether keep lying and quietly changing their terms of service to say that USDT isn't backed up 1-to-1 with USD like they claimed, in fact it isn't backed up 1-to-1 with anything, and in fact the proportion that is backed up is backed up with anything they like, including (get this) repayments on loans to affiliated entities. In other words, they print Tether out of thin air, loan it to Bitfinex, Bitfinex dump it on the market for profit, and they claim the Tether is backed up by future repayments from the profit they just made after creating it out of nothing. It's honestly worse than fractional reserve banking. The NYAG is currently stringing Bitfinex up over all the regulations they have broken and the lies they have told: https://archive.fo/sZD01. A search on here or on reddit will find many, many users in the same situation as you.

This all feels very similar to when Quadriga went insolvent and then exit scammed a few months ago - stopping or delaying users from withdrawing, so they can wait on more deposits coming in to cover the withdrawals. Either way, everyone would do well to steer well clear of both Bitfinex and Tether.

[Saint-loup]

With the excuse of suddenly asking for KYC of unverified accounts,
Bitfinex is locking tons of funds.
They ask anything like proof of source of funds, proof of personal income, and so on,
explanations of each transaction(which is impossible for active traders).
I started to trade there because they did NOT ask for KYC.
It was also explicit allowed to send  from/to cryptoaddresses, you dont control!

I am aware that many,many accounts are recently blocked from withdraw.
g.e. https://www.reddit.com/r/bitfinex/comments/by15zs/bitfinex_is_locking_accounts/
If you search, you find a lot of reports...

Well I am a victim too.
Take care, they can use any excuse for not to pay out anymore.
It seems as if Bitfinex is really in trouble and starts to fuck selected customers.
Somehow this remembers me to the beginning of the end of BTC-e.

Can only recommend not to send anything anymore to Bitfinex until this reports of abusing users stops.

I'm sorry but you're not very clear, are you talking about fiats or cryptos?
Leowonderful quoted a paragraph from the FAQ saying only fiats need KYC, so I hope it's still the same, and they are not trying to withhold user funds  

[mr.relax]

I am talking about withdraw of crypto, not bankwithdraws!!!
I never did Fiat deposit or withdraw there.

[AdolfinWolf]

Leowonderful quoted a paragraph from the FAQ saying only fiats need KYC, so I hope it's still the same, and they are not trying to withhold user funds  

I would be surprised if it only is for fiat, considering their counterparties (Bittrex/Poloniex) had to force verification upon their users for just trading crypto a long time ago.

Not even close. Bitfinex has been selectively allowing a small portion of their clientele cash out to fiat while the rest is either subjected to random verification or fiat withdrawals that never go through.

It has been like this for almost two years now so it's definitely not new. I wouldn't recommend anyone to use Bitfinex with solid alternatives such as Coinbase Pro, Bitstamp, Gemini and Kraken having a great trackrecord.

I've always read worrisome things about them but i didn't know they were Poloniex-tier. Seems bad.

[figmentofmyass]

Leowonderful quoted a paragraph from the FAQ saying only fiats need KYC, so I hope it's still the same, and they are not trying to withhold user funds  

I would be surprised if it only is for fiat, considering their counterparties (Bittrex/Poloniex) had to force verification upon their users for just trading crypto a long time ago.

bitfinex =/= bittrex and poloniex. they have never mandated KYC for all users. when bittrex and poloniex did that, bitfinex banned USA residents instead and kept allowing unverified accounts for trading and crypto deposit/withdrawal.

however, just like binance, they can freeze your account and require KYC at any time:

As per our Terms of Service, we reserve the right to ask for KYC information at any point in time if your account activity raises flags.

[gentlemand]

I wouldn't put any money in somewhere with the possibility of KYC without verifying myself to pieces. It's just too much potential ball ache and some of the demands these places make are so stupid I want to see the demands up front before deciding to go with them before they have me by the nads.

KYC is a ticking time bomb. Better to defuse it before you're in too deep.

Hope your issue gets resolved in a timely manner.

[squatter]

I wouldn't put any money in somewhere with the possibility of KYC without verifying myself to pieces. It's just too much potential ball ache and some of the demands these places make are so stupid I want to see the demands up front before deciding to go with them before they have me by the nads.

KYC is a ticking time bomb. Better to defuse it before you're in too deep.

It all depends on your risk tolerance and the price you're willing to pay for privacy. People often say don't put anything on an exchange that you're not willing to lose and I think this is an extension of that. If you think you can double or 1000% your bitcoins by trading but are unwilling to verify identity, the risk might still be worth it. Withdraw profits quickly and regularly and if ever forced to verify, just consider your balance lost.

I'm very paranoid about my ID documents being compromised. I'm verified on Coinbase so if a market isn't listed there, I'm looking for an exchange that allows unverified users and limiting the funds I deposit there.

[gentlemand]

I'm looking for an exchange that allows unverified users and limiting the funds I deposit there.

Everywhere will eventually fall into line unless they want to recede into the shadows. That's just the way the world is going. Hopefully they'll have the courtesy to tell their users that they're going full KYC too but a few seem fond of keeping it to themselves until it's too late.

If you're happy with the amounts risked then that's cool. It would REALLY get on my tits.

[versprichnix]

On bittrex I lost some coins, and on hitbtc I lost a lot of them. I trusted hitbtc, it worked many years very smoothly, and suddenly they have sent me a KYC mail.

I'm paranoid, the worst case for me is the exchange ops are criminals, visiting me whenever they want. There are many signs in history this is probably the case. This said, the "loss" on some exchanges like bittrex and hitbtc in my view is a sort of donation to them, they will need it. The signs they give to me is worth all the money.

[mr.relax]

Update: after 3 weeks of negotiation they finally let mr withdraw.And they closed my account afterwards.

[squatter]

Update: after 3 weeks of negotiation they finally let mr withdraw.And they closed my account afterwards.

What do you mean by "negotiation?" Were you able to withdraw without being forced to provide any KYC documents? If so, that's a much better outcome than I expected.

[mr.relax]

The forced me to do full KYC, including showing source of fiat-funds and declaring my personal income before.
In the end I am happy with that outcome.
In Future I will avoid Bitfinex and Tether.

[versprichnix]

The forced me to do full KYC, including showing source of fiat-funds and declaring my personal income before.
In the end I am happy with that outcome.
In Future I will avoid Bitfinex and Tether.

There are a lot of people without a personal income, me too, and especially the poor all over the world. Will take Bitfinex the wealth of the poor? They are criminals!

Bitstamp asked me in their KYC, on which platforms I trade or use cryptos. Of course I answered nowhere, and left them. The trading platforms will misuse the questions to get ahead.

[timerland]

Don't touch Bitfinex or Tether. Both of them are extremely corrupt and offer you no safety. Tether constantly lies about their arrangements and their model of tethering 1 USDT to 1 USD. Bitfinex has also been very dodgy with their practices with their customers, with most exchanges requiring ID verification or banning users from certain regions, but Bitfinex allows trading of unverified users, and then when they have funds in their accounts and they "suddenly" find that they are from the US, they take the money and lock the account.

I'd be willing to bet that they do something really dodgy with your IDs. They've been getting into the IEO scene as well, and haven't been doing so well on that front as well.