crypto-bridge.org KYC scam !

[mikeywith]

crypto-bridge is allegedly a decentralized trading platform, which does not request any sort KYC from their users , suddenly, everything changed ! crypto-bridge announced the introduction of KYC on the effective date itself, leaving their clients with only two options:

1- Forced to submit their KYC.
2- Lose their funds.



I am not a lawyer, but I would like to know more from someone who understands EU AML laws better , to me , the only way for crypto-bridge not to be held responsible is the fact that law enforcement got their hands on their system and forced them to active KYC before giving their clients any chance to act, in other words crypto-bridge was forced to "surprise" it's client.

if the above theory is incorrect, then I will keep my negative feedback and probably create a flag against them.


Thanks to coupable for starting a thread regarding this matter in the Arabic Board

[crwth]

It's definitely a surprising turn out with crypto-bridge. I have used it a couple of times before and thinking it was a good exchange. It sounds really unfair to users like us to suddenly start doing the verification part. I would support your flag if ever you have already made it.

There could be a lot of reasons why it suddenly needed KYC and the most probable reason is the local authorities have contacted them and requested to have that user verification. We will never know.

CryptoBridge’s orderbook and trades are decentralized and fully auditable. Trading never stops.

[Steamtyme]

I guess coupable didn't link my thread which alerted them. Crypto-Bridge Just sprung KYC on everyone today - No notice given. I hummed about creating it here, but at this moment it's not a scam. They are just guilty of being Grade "A" Assholes. People have the option to be made whole, so I placed it in Service Discussion.
So far my running thoughts are more inline with extortion of personal information over theft. Now if a lot of people fail KYC and are just told to bad, that will be a different matter.

[suchmoon]

at this moment it's not a scam

Are they allowing to withdraw funds deposited before October? If not it's a scam, there's no two ways about it. Customers should be allowed to terminate the service without losing funds if they disagree with the new terms.

[Steamtyme]

No from what I tried you can't even access the account to confirm balances for those so inclined to walk away. I whole heart-idly agree that anything prior to October 1st should be able to move, something I will have to try and do or wait for people better than myself to do is see how exactly their terms and conditions could be applied in this situation. Either way, it's just another step towards someone out there someday, playing pretend to be **. ****** *********** asking for great big Fiat loans.

[mikeywith]

So far my running thoughts are more inline with extortion of personal information over theft.

i don't seem to find the difference between the two theories you presented, or maybe it doesn't matter since both lead to the same thing.

You see the word scam to the average English speaker like myself means 'lack of trustworthiness', so unless I am okay with extortion of personal data then I think it's a scam, to those who speak better English might call it something else, but it sure is worthy of being tagged and flagged for IMHO.

[hacker1001101001]

I think, the exchange is shady enough just because they didn't gave any prior warning to the users about the change in policy and didn't allowed the users to exit the service with the funds they owned.

One can argue, this is legally right or some conditions forced them to do so, but from the perspectives of an user of the exchange this change is a very annoying thing, which clearly indicates that the exchange doesn't care about costumer's satisfaction and comfort in anyway and can land you into a trouble anytime in the future.

You see the word scam to the average English speaker like myself means 'lack of trustworthiness', so unless I am okay with extortion of personal data then I think it's a scam, to those who speak better English might call it something else, but it sure is worthy of being tagged and flagged for IMHO.

In one way, this looks like extortion of personal info but it is more like taking users funds without them being warned. This is purely a SCAM for me as a exchange costumer.

I would surely support the flag once created.

[Steamtyme]

i don't seem to find the difference between the two theories you presented, or maybe it doesn't matter since both lead to the same thing.

Just my opinion here; it's a dick move there is no denying this. Until a few things happen, it's not fraudulent or deceptive nor have they just outright taken funds. Given time, enough information may come out to prove they deceived everyone by not disclosing this was coming. So far from the minimal communication I've seen, as well as Discord Mods pretending they aren't associated with the CB, they act as if this was forced upon them with a "gag" order of sorts.
There are a few things that make it easy to call a scam. First would be a user failing KYC despite providing everything necessary and having their funds withheld. Next would be information about then having notice and not being bound to keep this change from their customers. Until then, it can be said they are complying with the authorities as required.
I actually would like to venture down a different thought process here for a second. Could they not have suspended operations within the EU to avoid having to comply. Allow users to make a decision, then roll out service across the globe again in a month or so. I know not as much free coins that route, but an option none the less.

I wouldn't support a flag at this time. I am a customer and have coins there at the moment. It just seems premature given what we know at this moment, as being forced to operate within the Law doesn't give intent. So I'll wait.

[Little Mouse]

One can argue, this is legally right or some conditions forced them to do so,

There has no point of argue. Any kind of implementation must be announced at least one month ago. Coinexchange will be closed from December first, they have announced it already.
CB is a decentralized exchange, there's no point of requiring KYC either. Although it's their exchange, their rules. But why they don't give much time to the users? So that people who are not interested with KYC can withdraw fund.

[hacker1001101001]

One can argue, this is legally right or some conditions forced them to do so,

There has no point of argue. Any kind of implementation must be announced at least one month ago. Coinexchange will be closed from December first, they have announced it already.
CB is a decentralized exchange, there's no point of requiring KYC either. Although it's their exchange, their rules. But why they don't give much time to the users? So that people who are not interested with KYC can withdraw fund.

That's what I said, it's a DICK move overall and I agree KYC is SHIT.

[Harold Finch]

at this moment it's not a scam

Are they allowing to withdraw funds deposited before October? If not it's a scam, there's no two ways about it. Customers should be allowed to terminate the service without losing funds if they disagree with the new terms.

I agree, this is definitely a deception of users.
Do they already have a flag? Because they clearly deserve it and I will support the red flag if the author creates it.

[mikeywith]

I wouldn't support a flag at this time. I am a customer and have coins there at the moment. It just seems premature given what we know at this moment, as being forced to operate within the Law doesn't give intent. So I'll wait.

Understood, there is nothing wrong with giving the situation a bit more time so that the image is quite clear, I have not created any flag against them yet, in fact a customer like yourself should do that so the flag is stronger, I will however keep the tag just to warn potential customers coming in and have no clue about the ongoing situation, and I believe that tag for now serves a good purpose until proven other wise.

would be good to hear back from you or anyone who deposited funds prior to October 1st ,and refused to submit their documents, how they deal with those  individuals is key here.

[Steamtyme]

I will definitely keep people informed as to how this plays out. Like I said I will wait it out a while, but will likely have to submit. Especially since they can choose to de-list any coin they wish. Got so caught up in my ranting and raving I had forgotten to Tag, thanks for the reminder. The discord has been pretty entertaining, as far as irritating situations go at least.

[o_e_l_e_o]

So I've had a good read of their Terms and Conditions and their Privacy Policy, and I've found a few interesting snippets. All emphasis is my own.

https://crypto-bridge.org/terms-and-conditions/
https://archive.fo/qFpM6

https://crypto-bridge.org/privacy-policy/
https://archive.fo/sKJOu

5.6 The Company collects as little personal data as possible and attaches great importance to its protection.

No particular importance for this quote, just funny/shady that they should say it when it's obviously not true.. Same as claiming to be "decentralized" when they are obviously not.

5.7 The Company is entitled to block Services through the Gateway at its own discretion and without notice particularly if you have given false information, violate these Terms of Use or demonstrate other abusive behavior. If your Account is blocked, you can contact the Company via our support help-desk to resolve the matter. You will not be able to use the Services during a suspension. If the block is not lifted and your Account is blocked permanently, you will receive a refund of BRIDGE-IOUs already in your possession, but you will not be able to enter into any future deposits or withdrawals via the Gateway.

This whole quote doesn't apply, since you haven't violated their terms, but the part about receiving a refund of Bridge IOUs is interesting. Can anyone who uses this exchange shed some light on what Bridge IOUs are? Is this essentially a refund or everything they are holding on your behalf, or something else entirely?

9.2 All Users accessing our Websites from IP addresses within the United States of America or listing the United States of America as place of residence (the 'Selected Users') or nationality are subject to a user identity verification process (the 'User Identity Verification Process').

Interesting that their Terms and Conditions have not yet been updated to reflect the new KYC rules for users outside the US.

20.3 The Company strives to continuously improve and extend their Services. Thus, the Company reserves the right to adapt these Terms of Use accordingly. The updated version of the Terms of Use as published on the Websites and made known to you via the CB Wallet will automatically become part of this agreement if you do not object to the changes within four weeks.

You have four weeks to object, by their own Terms and Conditions.

The process is carried out for US residents due to requirements pertaining from U. S. anti-money laundering regulations. For other residents, the process is presently voluntary, unless we find it necessary to obtain this information from you for security and verification purposes in the course of providing our services to you.

As above, still out of date regarding KYC and users outside the US.

We reserve the right to amend our Privacy Policy in order to adapt it to changes in the law or changes to the service and data processing. However, this applies solely with regard to declarations on data processing. If your consent is required or if parts of Privacy Policy contain regulations of the contractual relationship with you, changes will only be made with your consent.

These changes quite clearly affect your "contractual relationship", and no consent was sought.

Looking at this, it seems pretty clear that they are in breach of their own legal requirements.

[Steamtyme]

Nice well I'm glad that someone else sees them the same way I did. The info out there about them is spotty at best and hard to confirm. I did get an actual company name last night, based in the EU so the american HQ is just BS they were happy to ket people believe. I wasn't sure about the terms as I read them but you helped pick it apart very well.

I had come across an interview that was even funnier to read it was a little after they announced the US portion. I had missed the 4 week timeline as I read through this  overnight so that will be my next foray with their support; if I actually find a rep who doesn't deny representing them now that people are angry.

I don't know anything about the IOU's likely only something you run into once.

Edit: This morning/afternoon lol, it looks like there is now an Admin on discord answering questions, I've put the 4weeks point to them. Might be blocked as I couldn't @ them. We'll see, I don't mess with discord to much. T - The response is state law is above contractual law. So not to prove they knew it was coming and chose not to provide the 4 weeks, thus violating their terms prior to enforcement. Should be fun.

Inregards to below, legal action is a tricky one. Once I found out they were actually a EU company out of Denmark I believe, and CB is viewed as a product. I'm going to explore options for filing complaints. From what I've heard the EU has a lot of rules and what not.

[TheNewAnon135246]

Saw this on Twitter yesterday. Definitely a dick move, wondering if anyone will take legal actions.

[lestherat]

Exchanges are not a Banks, never never leave on exchanges more than you can afford to lose

Exchanges can be hacked, or run out of business, or like cryptobridge asking now for kyc.

By the way this requirement only for US citizens, if you want to withdraw, just use a VPN or Proxy



Update:

Only bad thing is right now, api only connect to US nodes, EU nodes seems down.

If you want to change them, you cant. This is very strange, they are forcing all users go through KYC requirements  

[Steamtyme]

Might want to catch up there bud. This is for all users everywhere. The difference was they allowed US citizens a grace period to leave with their coins, months ago when it was rolled out.

At this point I had seen you could attempt to sell coins into BTS I believe then use a different bitshares gateway to withdraw them there. There are a couple extra steps. The problem is some coins have surprise surprise taken a 30+% hit on that pairing. I have some time so I'm going to keep playing around.

On another note I have been reading up in Fractal and their data deletion policy. So I'm going to check with support to see how long it takes and what sort of imprint is left behind.

[lestherat]

Trying to withdraw some founds from cryptobridge and i got this message



Even if is connected to China node

Same message if you try to deposit.

Damn, nothing last forever, crypto is not looking good anymore, big brother want to know

how wealth or poor we are 

[marlboroza]

Saw this on Twitter yesterday. Definitely a dick move, wondering if anyone will take legal actions.

That would be interesting to watch: "Your Honer, they don't want to give me my money unless I send them my personal information which they are asking because authorities told them so". Legal action would make sense if someone send them ID and then they decide not to send funds.

I am not a lawyer, but I would like to know more from someone who understands EU AML laws better , to me , the only way for crypto-bridge not to be held responsible is the fact that law enforcement got their hands on their system and forced them to active KYC before giving their clients any chance to act, in other words crypto-bridge was forced to "surprise" it's client.

if the above theory is incorrect, then I will keep my negative feedback and probably create a flag against them.

https://ec.europa.eu/info/policies/justice-and-fundamental-rights/criminal-justice/anti-money-laundering-and-counter-terrorist-financing_en
It's not that that they are or not allowed to do this, it seems it will (or is) become mandatory for all financial institutions and other money related businesses, so doing KYC procedure to everyone, even if it is conducted without prior notice, seems to be by the law.

Having said that, doing KYC without prior notice is pretty much, as TheNewAnon135246 said, dick move.