Exchange won't release bitcoins unless I verify identity. Advice appreciated.

[I_savor_your_pets]

Hey mods, if I'm posting at the wrong place, please move this to the right section. Thanks.

Anyway, I deposited about $1000 worth of bitcoins on Paxful when ID verification wasn't required, but now Paxful won't let me withdraw unless I go through ID verification. Because I don't want to hand over my ID, my bitcoins are stuck.

I've spoken to a lawyer who suggested I get a lawyer in New York (where Paxful is based) if I really want to take it to small-claims court, and I want to hold off on suing for now because people here might have easier solutions. If anyone has any ideas, please help me out. Thanks.

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[Bitcoins101]

Paxful is a scam website at this point. It's only a matter of time before they either go offline completely or the owners are arrested. Google around and you'll find dozens of reports of people with coins (often $10K-$100K+) locked (stolen by the drug addict owner) there indefinitely for no reason at all. Dozens of reports = hundreds of actual incidents. A lawyer will eat up most of your $1,000.

[Upgrade00]

Firstly not not keys, not your coins. If you're using a custodian exchange then you are pretty much subject to their rules, including freezing accounts, blocking transactions or giving your personal information up to the authorities and these exchanges indemnify themselves with various terms on their ToS which each user first agrees to before being able to use their platform.

Your best bet would be to fulfill their requirements first and then wait to get their response before seeking legal advice.
You can also bug them on their social platforms and email, they may reach to the threat ofna scandal and open up your account.

[CryptopreneurBrainboss]

Don't think there's anything you can do order than complaining to their AML/KYC  procedures. 99.9% of the service providers in the industry are now requesting for this information. Paxful is a centralized platform and that's what you get for entrusting your funds to any of the centralized platforms out there. They might not be requesting you to verify today in order to get hold of your funds but when you try withdrawing, that's why they use the opportunity to get hold of your private information.

Getting a lawyer would just be a waste of your money and time so don't, they have their ToS you signed that backs then up and the worst part is, I bet you didn't read these terms before accepting them just as majority doesn't before accepting the terms and conditions of the platform they intend registering on.

For future reference, don't trust centralized platforms, they're better alternative that are decentralized out there, and if there was to be any need to use them, then just know you have to be willing to give out all the sensitive/personal informations they'll required from you presently or in the future.

[Bttzed03]

Anyway, I deposited about $1000 worth of bitcoins on Paxful when ID verification wasn't required, but now Paxful won't let me withdraw unless I go through ID verification. Because I don't want to hand over my ID, my bitcoins are stuck.

Pretty much the same situation with exchanges like Bittrex when they first implemented forced KYC to all their users.

@Upgrade00's suggestion of bugging them on social media could work just like what happened to this user

Paxful banned my account over a year ago for accidentally marking a $30 payment complete. Even though I canceled the trade after I realized my mistake a moderator still perm banned me an hour after I canceled the trade and they have been refusing to let me withdraw my balance for the last year now. Below is a reddit post I made about this showing multiple other people who also had Paxful admins steal their bitcoin

https://www.reddit.com/r/Bitcoin/comments/f35kc0/bitcoin_exchange_paxful_stealing_peoples_bitcoin/

Edit: After over a year and blasting them on social media they finally let me withdraw my bitcoins. Case closed.

It's not the same but as the case above tells you, they could also give in to the pressure. It will most likely take a long time too.

[Maus0728]

If you are trying to reach Paxful on their social media accounts, here are the links; however, it does not guarantee that your case will immediately solve.

https://www.facebook.com/paxful
https://twitter.com/paxful
https://www.reddit.com/r/paxsavoid

This is why it is extremely important to at least read the Terms of Service of every platform to ensure that you will not trigger KYC/AML verification process after you have created the account and bought your assets. Using this forum or Bisq could also be a good alternative instead of using Paxful.

[dkbit98]

You better read the terms before you register and sign up for any website or exchange, because Paxful had mandatory kyc for some time as far as I know.
There is no lawyer in planet earth who can help you with this so don't waste your time on this, because you signed a deal and accepted the terms when you registered, and you need to pass verification to use their service and withdraw coins.

Read:
https://paxful.com/aml-policy
https://paxful.com/terms-of-service

[Bitcoins101]

You better read the terms before you register and sign up for any website or exchange, because Paxful had mandatory kyc for some time as far as I know.
There is no lawyer in planet earth who can help you with this so don't waste your time on this, because you signed a deal and accepted the terms when you registered, and you need to pass verification to use their service and withdraw coins.

Read:
https://paxful.com/aml-policy
https://paxful.com/terms-of-service

That's BS, you could absolutely get your coins back with the help of a lawyer when dealing with a company operating legally. Terms of service are not perfectly binding and don't give them a right to steal money. However, Paxful is a criminal enterprise run by a guy with a brain so fried up from drugs that he doesn't see the hole he is digging for himself, so don't expect them to even respond to your lawyer. He's probably looking at $10K+ in legal expenses to get anywhere.

[examplens]

You better read the terms before you register and sign up for any website or exchange, because Paxful had mandatory kyc for some time as far as I know.
There is no lawyer in planet earth who can help you with this so don't waste your time on this, because you signed a deal and accepted the terms when you registered, and you need to pass verification to use their service and withdraw coins.

Read:
https://paxful.com/aml-policy
https://paxful.com/terms-of-service

That's BS, you could absolutely get your coins back with the help of a lawyer when dealing with a company operating legally. Terms of service are not perfectly binding and don't give them a right to steal money. However, Paxful is a criminal enterprise run by a guy with a brain so fried up from drugs that he doesn't see the hole he is digging for himself, so don't expect them to even respond to your lawyer. He's probably looking at $10K+ in legal expenses to get anywhere.

if for a moment we ignore the dubious way of doing business of this service, at the time the OP registered there and deposited the money, there was no mandatory KYC. now they have complied with AML/KYC law and KYC is needed for further disposal of funds.
He can't do anything even if he hires a lawyer or whatever, they act in accordance with certain legal regulations.

I assume they informed all users before introducing the mandatory KYC, so here is his mistake in not withdrawing funds on time.
I think, there are only two options. To pass KYC and withdraw their funds or to forget about this money and move on.

[mk4]

Ah, another one of those topics that I get to shill peer-to-peer no KYC services.

Next time, use HodlHodl[1] and LocalCryptos[2] instead. Or if you're a bit more hardcore, probably Bisq[3].

[1] https://hodlhodl.com/
[2] https://localcryptos.com/
[3] https://bisq.network/

[aysg76]

See you need to comply with the rule and regulation of these exchanges in order to withdraw your funds and moreover the keys to your Bitcoins resides with Paxful and you can't do anything at all so simple is to do KYC verification done with their 3D biometric AI and you will get access to your funds.Moreover I think it is stated that you need to do KYC done before hand on Paxful.

For level 1 only email and phone verification is needed and you can trade between $1000 and if you want to go above then level 2 verification with ID proof of yours is needed.Rest you can check at this site:

https://paxful.com/support/en-us/articles/360011638919-Limits-and-Verification

For that reasons you need some other options because these exchanges won't let you provide complete authority over your funds and try to make P2P trades over localbitcoins and any other useful way you can.

[Taskford]

Hey mods, if I'm posting at the wrong place, please move this to the right section. Thanks.

Anyway, I deposited about $1000 worth of bitcoins on Paxful when ID verification wasn't required, but now Paxful won't let me withdraw unless I go through ID verification. Because I don't want to hand over my ID, my bitcoins are stuck.

I've spoken to a lawyer who suggested I get a lawyer in New York (where Paxful is based) if I really want to take it to small-claims court, and I want to hold off on suing for now because people here might have easier solutions. If anyone has any ideas, please help me out. Thanks.

Maybe there's something triggers them to ask about where your fund came from that's why they want to verify you as the owner of that account so maybe the least thing you can do now is to follow what are thing they require to  you since if  they insist to give your money even if you already submitted the documents they ask then maybe its time  to sue them on court if you have an idea about their location and how to pursue this action.

[tranthidung]

• Terms of service
• AML Policy
• Why is My Paxful Account Frozen or Restricted?

What causes account restrictions?

Here are some of the activities that can lead to your account being restricted:

• Seller of cryptocurrency asking to cancel the trade after the payment was completed.
• Conducting a trade outside of Paxful trade escrow by communicating through Telegram, WhatsApp, etc.
• Making a chargeback or reversing the payment after it has been processed.
• Coin locking or holding a seller’s cryptocurrency in escrow without the intention to make the payment and complete the trade.
• Unauthorized use of gift cards, such as selling a gift card in multiple trades and selling gift cards that have already been used.
• Forcing or tricking a trade partner to immediately release their cryptocurrency.

Paxful has zero tolerance for the following:

• Using multiple Paxful accounts.
• Using a fake identity or falsified verification documents.
• Using Paxful from an OFAC banned country listed on this page.
• Unauthorized use of gift cards / chargebacks / defrauding users.

You know what you did, but if you want to appeal or get support, open as support ticket and wait. How to Contact Support

[Twinkledoe]

You better read the terms before you register and sign up for any website or exchange, because Paxful had mandatory kyc for some time as far as I know.
There is no lawyer in planet earth who can help you with this so don't waste your time on this, because you signed a deal and accepted the terms when you registered, and you need to pass verification to use their service and withdraw coins.

Read:
https://paxful.com/aml-policy
https://paxful.com/terms-of-service

The OP mentioned that he registered when KYC was not yet required. And because paxful changed their terms of service, maybe the OP was not aware that KYC is already mandatory on this platform. Too bad, if he can't get out his funds. Why not just submit your KYC docs and be done with it? Because if he will hire a lawyer, he may end up paying for fees that has no assurance that he can get his funds back.

One thing though, someone advised above that put pressure on paxful by being noisy in social media. That is, if he has the patience to do so.

[tranthidung]

The OP mentioned that he registered when KYC was not yet required. And because paxful changed their terms of service, maybe the OP was not aware that KYC is already mandatory on this platform. Too bad, if he can't get out his funds. Why not just submit your KYC docs and be done with it? Because if he will hire a lawyer, he may end up paying for fees that has no assurance that he can get his funds back.

One thing though, someone advised above that put pressure on paxful by being noisy in social media. That is, if he has the patience to do so.

Another rule, What Countries Require ID Verification?.

OP know what he did, and you can not listen to a story from one side and make conclusions.

Additionally, the forum and moderators are not responsible to solve such case. As being said, go to the Paxful website and create a support ticket. Things need to be done officially.

[Rengga Jati]

Hey mods, if I'm posting at the wrong place, please move this to the right section. Thanks.

Anyway, I deposited about $1000 worth of bitcoins on Paxful when ID verification wasn't required, but now Paxful won't let me withdraw unless I go through ID verification. Because I don't want to hand over my ID, my bitcoins are stuck.

Most centralized exchanges will require KYC/AML.
This also happens in all regulated crypto exchanges in my country, the withdrawal can be only executed if we have done our KYC requirements and approved. Without KYC approval, we cannot get our funds. That is why before transferring money or assets to exchange, it is better to check the T&C, especially about the KYC requirements.

And in Paxful, it is stated required for that KYC:
https://paxful.com/support/en-us/sections/360003848973-Account-Verification
https://paxful.com/support/en-us/articles/360009324259-How-to-Do-KYC-On-Paxful

Or, if you have tried to do KYC and still not approved, try to contact their CS support and explain your case in details with the proves.

[Darker45]

I doubt if Paxful will allow you to withdraw your funds without doing KYC. After all, as a user of their platform, you are bound to abide with their updated policies. You cannot simply insist on doing something on the platform based on an outdated policy, one which is already replaced.

There are so many complaints against Paxful all over the internet. People are even calling the site scam.

Incidentally, I suddenly remembered this thread by cabalism13: https://bitcointalk.org/index.php?topic=5320332.0. I'm not sure if it's still working but you might want to check it out and try.

[cabalism13]

Hey mods, if I'm posting at the wrong place, please move this to the right section. Thanks.

Anyway, I deposited about $1000 worth of bitcoins on Paxful when ID verification wasn't required, but now Paxful won't let me withdraw unless I go through ID verification. Because I don't want to hand over my ID, my bitcoins are stuck.

I've spoken to a lawyer who suggested I get a lawyer in New York (where Paxful is based) if I really want to take it to small-claims court, and I want to hold off on suing for now because people here might have easier solutions. If anyone has any ideas, please help me out. Thanks.

My Only suggestion is to go through the ID Verification, as this is for the security purposes, and afaik you are at the limit of transaction which had to do KYC.
BTW, I'm with Paxful and Currently handling USA and South African Communities. Reach out to me if needed. Else, if you still insist on going through without it then sad to say you can't get the funds whatever means you take

[Tessnik]

 I always advise users to read the terms and conditions of most exchange before depositing your funds in them to avoid being stuck like this, the only option left for you in this situation is to go ahead with the ID verification if you want to get access to your $1k bitcoin if they come up with other excuses again then you take the next step which is legal action.

[The Cryptovator]

It seems it's hard to withdraw your funds from there without complying with their requirements. You may fight with them in court, but most probably you have to spend more than your portfolio of Paxful. Sometimes exchanges are forced to follow the government's requirements, if something like that then even you can't win from the court as well. If you have access to the address from where you have sent the funds to Paxful, you may try to convince them to send it back to the same address. But I am not sure if it would help or work the right way. But you can give it a try, otherwise, you have to follow their instructions. No one could help you except Paxful support.