BYBIT LOCKED 12 BTCS OF MINE, WHAT DO I DO?

[SmoothSailing91]

I recently opened an account with bybit because they did not require a KYC, sent my btcs to that account and tried to withdraw USDT out, but now they're asking me for a KYC, when I asked why they said it was for security reasons that they can not disclose.. Anyone been through this!?!?

[Lucius]

It's a classic trap that some crypto services have, because they say you don't need KYC - but on the other hand they reserve the right to ask you to identify yourself at any time. In this particular case, I think the reason is that you sent 12 BTC to your account, which is almost $500 000 - and I think it's almost impossible to be able to convert that amount anywhere without KYC.

Any crypto service that operates by law must implement such measures because of the law on money laundering and terrorist financing - because otherwise their license would be denied. If you want your BTC back, you have no choice but to make a KYC, and that shouldn't be a problem if you acquired the BTC legally and you pay taxes on it.

[SmoothSailing91]

I'm a Canadian Citizen and I just realized on their site it says Canadians are not allowed to use their service. Do you think there would be any other way?

[SFR10]

I'm a Canadian Citizen and I just realized on their site it says Canadians are not allowed to use their service. Do you think there would be any other way?

I read that part as well and it mentioned only a part of Canada ^[Québec], so if you belong to another territory then perhaps they might allow you to resume your activity on their platform.
^{- I think your best and "only" chance in getting back those funds is to do what Lucius suggested above [go through the KYC process].}

[SmoothSailing91]

Thanks, I thought it was all of Canada.

[dansus021]

well you must to do kyc first before able to withdraw your a lot of bitcoin  

and some little advice before using and service try to read service agreement or if you don't have time to read it   or lazy enough like me

try send little amount to test the site

1. Deposit [OK]
2. Test the service [OK]
3. Withdraw [OK]

if all good then deposit big amount

[SFR10]

Thanks, I thought it was all of Canada.

You're very welcome... I know it has been only a week since you last commented here, but were you able to complete their KYC process and withdraw?

if you don't have time to read it   or lazy enough like me

try send little amount to test the site

Unfortunately, that's not going to work ^{[most of the time]} since almost all of them would flag transactions that contain large amounts.

[leea-1334]

As Lucius explains,,, this is just because of the amount you triggered. So testing it is not really going to help there but asking their support in advance is helpful. KYC actually does not apply in most jurisdictions until a certain amount is hit,,, which is what I found out at my services mainly because I never trigger KYC and I actually asked support why:)

The good news is laws require if you cannot KYC then they must return funds to you. So you are always safe whatever the case.

[logfiles]

When Bybit launched, one of their selling points was there was No need for KYC verification. This was when they were still a small exchange with low volume looking to compete with the likes of Bitmex and attract traders, but the tables are now slowly turning. In fact, they are already restricting traders from certain countries, which mean anybody can be requested KYC verification at any time.

12 BTC is a huge amount you can send to any exchange, minus going through their terms of Service. Even exchanges that have lax KYC requirements like Binance or Kucoin have a 2 BTC and 5 BTC maximum daily limits respectively for withdrawals in unverified accounts. 12 BTC or the equivalent in USDT is way above that.

[stomachgrowls]

I recently opened an account with bybit because they did not require a KYC, sent my btcs to that account and tried to withdraw USDT out, but now they're asking me for a KYC, when I asked why they said it was for security reasons that they can not disclose.. Anyone been through this!?!?

With that having amount of coins then you would really be ending up on complying account verification even if you do stick out with Binance and trying

to cash out those in USDT then you would really need to verify your account.I dont have experience with Bybit and this is my first time on hearing out this platform.

As if you would have other options left? Of course you would really be needing to comply or else those account funds would be locked.
Just pray that they wont really be having some alibis after you had submitted on whats been asked.

Good luck!

[leea-1334]

When Bybit launched, one of their selling points was there was need for KYC verification. This was when they were still a small exchange with low volume looking to compete with the likes of Bitmex and attract traders, but the tables are now slowly turning. In fact, they are already restricting traders from certain countries, which mean anybody can be requested KYC verification at any time.

12 BTC is a huge amount you can send to any exchange, minus going through their terms of Service. Even exchanges that have lax KYC requirements like Binance or Kucoin have a 2 BTC and 5 BTC maximum daily limits respectively for withdrawals in unverified accounts. 12 BTC or the equivalent in USDT is way above that.

You mean there was no need for KYC verification right?

I actually saw them putting loads of ads on Etherscan at some point and even if you surfed some of those yahoo ads,,, you would get Bybit ads pushed (which was strange because they were an exchange but I guess it was a different time).

As I said above though, the good news is they have to return it to you if you cannot verify. They cannot seize it.

[Potato Chips]

As I said above though, the good news is they have to return it to you if you cannot verify. They cannot seize it.

Source that this possibly applies to OP's case? cause bybit is doing the exact opposite which could get them sued if your claim is true.

... Please kindly reply to us with the above requirements within 5 business days. Please be noted that your account will be restricted from withdrawal until we reviewed the supporting documents.

Interesting thing I found is bybyit doesn't have the license to operate in Canada and is now being hunted by the regulators.

The regulator said Bybit is operating an unregistered crypto asset trading platform and encouraging Canadian customers to trade crypto asset products that are securities and derivatives on the platform.

I honestly would bring this up as a means of refusal/skepticism lol wouldn't hurt to try.

[hugeblack]

AFAIK, that BYBIT registered in the British Virgin Islands, so unless they specifically state that identity verification will be enforced, their request is considered strange and may be indirect scam.
Most of the restrictions imposed by countries are in the process of transferring to cash or any other currency, and since this platform is not subject to any country and trades in cryptocurrencies, it must allow users to withdraw with certain restrictions.
Have you tried to withdraw the amount at once? Or in the form of small amounts every day?

I don't think it is wise to deposit such a huge amount and try to withdraw it quickly.

[logfiles]

You mean there was no need for KYC verification right?

Yeah, sorry I missed out one word. Now corrected  

AFAIK, that BYBIT registered in the British Virgin Islands, so unless they specifically state that identity verification will be enforced, their request is considered strange and may be indirect scam.
Most of the restrictions imposed by countries are in the process of transferring to cash or any other currency, and since this platform is not subject to any country and trades in cryptocurrencies, it must allow users to withdraw with certain restrictions.
Have you tried to withdraw the amount at once? Or in the form of small amounts every day?

I don't think it is wise to deposit such a huge amount and try to withdraw it quickly.

Since it's a derivatives exchange, the restrictions are even worse, especially from a number of regulatory bodies in European countries and the US such as CFTC, FCA breathing down their necks. I don't know if OP first traded his BTC through perpetual contracts before converting it into USDT and trying to withdraw it...

But, even just sending BTC there, swapping it into USDT and then immediately trying to withdraw that much USDT at once can get one's account flagged or the withdrawal blocked. It could be an attempt to launder money, and I don't think the bybit founders would want to go down the same road as their Bitmex counterparts did.

[Furious 7]

I don't think it is wise to deposit such a huge amount and try to withdraw it quickly.

I think BYBIT suspects that this is like wanting to launder a large amount of money, imagine that 12BTC is deposited and then exchanged to USDT and withdrawn again how can BYBIT not hold it?

Many suggestions for doing KYC mean that you have to do it so that your legal money is saved and can be returned to your personal wallet.

The OP shouldn't have to do it all at once.

[ultrloa]

I don't think it is wise to deposit such a huge amount and try to withdraw it quickly.

I think BYBIT suspects that this is like wanting to launder a large amount of money, imagine that 12BTC is deposited and then exchanged to USDT and withdrawn again how can BYBIT not hold it?

Many suggestions for doing KYC mean that you have to do it so that your legal money is saved and can be returned to your personal wallet.

The OP shouldn't have to do it all at once.

That's what I thought also since 12 BTC is huge amount and maybe bybit find something thats wh6 they ask yhat KYC procedure to OP, so better to do what they ask so that OP can get his balance or use it if he want to trade.

If trust of the platform is the issue well bybit is quite doing a good job so far and I can say they are good so there's nothing to worry about what they ask since this is part of their verification process.

[Woodie]

The problem with most of these crypto services of today is they might claim not to require kyc from their clients but most of the times these requirements are hidden in the terms and conditions under anti money laundering (AML) and are usually triggered by huge crypto deposits.

My advice if there is nothing to hide and you need to get back your funds asap go ahead with KYC otherwise these guys won't disclose why they holding your funds against your will,good luck.

[leea-1334]

As I said above though, the good news is they have to return it to you if you cannot verify. They cannot seize it.

Source that this possibly applies to OP's case? cause bybit is doing the exact opposite which could get them sued if your claim is true.

Source is me:) I did not use Bybit but I have been refused KYC twice at two exchanges before and of course,,, I got quite worried, as I submitted KYC but they could not accept it. They did freeze withdrawal first and deposits, but they both told me because I asked:)

AML procedures for any bank and financial institution is simple. If you cannot pass their process, they refuse the business,,, not confiscate. They legally cannot confiscate, they can only report it and return to you the funds.

[Potato Chips]

Source is me:) I did not use Bybit but I have been refused KYC twice at two exchanges before and of course,,, I got quite worried, as I submitted KYC but they could not accept it. They did freeze withdrawal first and deposits, but they both told me because I asked:)

AML procedures for any bank and financial institution is simple. If you cannot pass their process, they refuse the business,,, not confiscate. They legally cannot confiscate, they can only report it and return to you the funds.

Looks like there was a misunderstanding, I was under the idea you refused it yourself and not they refused you which still needed you to undergo KYC first. 

In any case, Laws differs per case/jurisdiction and there is no one size fits all, not to mention that there are some shady exchanges who doesn't abide to their respective laws either upfrontly or sneakily. Take a look at this case similar to yours: TL;DR: Op was in paxful's banned country hence couldn't pass the KYC to get their funds out. Paxful's response to sum it up was 'take it or leave it' = get verified to get your funds back or don't and get nothing.

[magneto]

I recently opened an account with bybit because they did not require a KYC, sent my btcs to that account and tried to withdraw USDT out, but now they're asking me for a KYC, when I asked why they said it was for security reasons that they can not disclose.. Anyone been through this!?!?

Classic bait and switch.

Nothing you can do since they can just claim that it was part of the KYC/AML T&C's all along.

You shouldn't go into any centralised exchange expecting to rely on their goodwill in keeping their track record of not requiring KYC. When it comes down to it, they will prioritise covering their own compliance requirements, or to hold onto as much customer funds as they can.