Bitmex extorting people for their IDs

[donthorp]

Am I the first one? I hardly used the website, actually didn't do even 1 trade, but now they locked me out and say they only allow me back in (and get my money back) if I give a photo of myself and my ID.

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[The Sceptical Chymist]

I don't think they're trying to extort you--this basically happened to me with Binance when they started their US-exclusive site.  I only had some dust on there, but I can't even access it anymore since I'm in a state that they don't support and even before that, they had started requiring KYC from people if I remember correctly.

My guess is that Bitmex is now required to get your dox by whatever country's government they operate under, though I don't know much about them since I never used them.  I think all exchanges are going to have to do the same thing eventually, and I don't think they have a choice about locking people out if they don't want to go through the KYC proceedure.

I'd be interested to hear from members who've dealt with this issue on Bitmex, but I don't think it's a scam.

[squatter]

Am I the first one? I hardly used the website, actually didn't do even 1 trade, but now they locked me out and say they only allow me back in (and get my money back) if I give a photo of myself and my ID.

You definitely aren't the first one. Threads like this surface from time to time.

They have always reserved the right to demand ID verification. This is from their terms:

1.5: HDR reserves the right at any time to verify your identity for the purposes of complying with the Seychelles’ Anti-Money Laundering Act 2006 or any other Applicable Law.

[amacar2]

I am also with them without any trade or even balance in the wallet but havent received any warning like that. It seems they are forcing everyone with even small amount of coins in wallet for verification which they can because of their terms which is long enough for us to skip through during registration.

DEX are supposed to solve this extortion but they might also get hammered by regulators like mixers in future.

[TheUltraElite]

I hardly used the website, actually didn't do even 1 trade, but now they locked me out

These two statements dont match, you know? If you hardly use them why are you even bothered about them? Surely you have something more precious stored there which makes you go back.

and say they only allow me back in (and get my money back) if I give a photo of myself and my ID.

What are the odds of you sharing only one side of the story and you have used some tainted source to get the money?

The few cases of where casinos and exchanges end up forcing KYC is when there is suspected money laundering going on. You have only stated that they asked for KYC but you did not state where you got the funds in the account and on top of that you said that you dont even do trade there as if the money there is not important to you still you bothered to post it here. How convenient is that?

[donthorp]

You definitely aren't the first one. Threads like this surface from time to time.

They have always reserved the right to demand ID verification.

30 bitcoins! Yikes!

I don't have any issue with their terms. I have an issue with them keeping the money for themselves like any scammy website would.

[logfiles]

Am I the first one? I hardly used the website, actually didn't do even 1 trade, but now they locked me out and say they only allow me back in (and get my money back) if I give a photo of myself and my ID.

I do trade on Bitmex but i have never faced such an issue. Maybe your account has some suspicious activity like logging from a restricted area. So they could probably want to prove whether you are not from a restricted county before unlocking your account.

Always try to read terms and conditions my friend especially things to do with country restrictions because at the end of the day it's your money you are sending in there. If it gets blocked for breach of TOS, you are partly to blame.

[LTU_btc]

Extorting is too strong word that you've used. I'm not using Bitmex, but I think that you shouldn't be surprised that they asked you to pass KYC. It's part of regulstions that they have to follow, and it's not different from other centralized exchanges.
But as others said, probably you're not telling us whole story. I doubt that they would ask KYC for inactive accounts. There should be some red flags which forced them to lock your account.

[hello_good_sir]

Am I the first one? I hardly used the website, actually didn't do even 1 trade, but now they locked me out and say they only allow me back in (and get my money back) if I give a photo of myself and my ID.

How much money did you store on there? Was it a substantial amount?

I've used Bitmex for a while now and haven't had any issues. It is likely that they genuinely suspect something wrong with your account, otherwise they certainly wouldn't be trying to shut your account down without any trades on it.

Though realistically the only way you will get your funds back is through providing the necessary ID, you could try negotiating with their customer support which I doubt will result in much meaningful results. If it's not a substantial amount, consider just moving on and using another derivatives exchange.

[donthorp]

Well, compared to the 30 bitcoins above it's peanuts but that's not really the point of posting on a community website, is it?

Anyway, this has been more akin to a community of bitmex reps, so in case a user comes here for help in the future, I'll leave a few points:

1)   Bitmex is not an exchange, although there's a push to portrait it as such. It doesn't involve fiat at any stage. Bitmex is a gambling website. Submitting to their KYC demands makes as much sense as sending documents, that even most governments don't ask, to any videogame website which has its own currency.

2)   They have every right to verify your ID.

3)   You have every right to decline their requests for help in doing 2)

4)   Breaking the terms and conditions or any other contract never ever automatically entitles the other party to keep your assets. Especially when there is no discernible damage. That wouldn’t fly on any reputable court.

5)   Terminating a contract has even less hold on keeping your assets

6)   If they say or imply they won’t allow you to have your money unless you do something for them, they are coercing you in exchange for a benefit which is extortion on most reputable courts, a criminal offense.

7)   Suspicion is not proof. If they have suspicions, it’s on them to turn that into evidence. If they cannot prove, you’re being discriminated against.

8 )    If you’re concerned about anonymity, keep in mind you can nominate (hire) anyone to act on your behalf. If you didn’t give any info so far, anyone can own the account, given they have the right details. Professional names are not illegal.

9)   Don’t waste much time on customer support or on their media accounts. According to experience they will likely delete your posts or give you canned circular responses. Try to contact the higher-ups which will be my next step.

If anything else, PM me.