My friend got arrested in a p2p scam

[Imran232]

My friend is a digital freelance marketer. He worked in marketplaces like Fiverr and Upwork. He has been working for the last 3 years. He has some fixed clients who work without the marketplace because of marketplace fees. They work via skype and email. There was no problem recently. He got new clints through his personal website. And the Clints give him his payment through bitcoin and my friends approve it. Then he asked me to exchange it for cash.

I didn't have enough cash, otherwise I would have bought it. Thats why I suggested him some p2p services like Binance, Paxful, and local bitcoins, but he had a problem with KYC. He didn't want to provide KYC. That is why he can't use binance. Now I don't want to share the exact name, sorry for that, because I used that service but didn't fall into any problems. Though my friend knows how to use online sites, he tried his own account on a platform and did basic kyc. Though it has a limit, the limit is enough for him.

Now he is dealing with someone who gives a good return and is also our country's man. My friend fixed a deal with him and the deal will be a bank transaction. The scammer sent money to my friend and my friend got a deposit message from his bank.

Then my friend released bitcoin. Here is everything perfect. But the problem starts from now. After 5 hours in the afternoon, my friend goes to the bank to withdraw the cash because he needs it. The bank manager says the money is in hold because they got information from the sending branch of the bank that the account holder of the sender has filed a case about this transaction. This transaction is not made via the account holder. That means this has become a hacking case.

And after 1 hour, police came and arrested my friends for hacking. But my friends don't hack. After the introgression My friends tell them everything and show them proof, then they trust them. But my friend uses bitcoin and bitcoin is illegal in our country. He is a freelancer, and in our country, freelancers get priority from the government. Cyber experts got proof that he was taking payments in bitcoin because he had a problem with paypal. And the clints approach him. Then he was released on a bail basis. And cyber experts are now working on it and the case is running. 3 days ago, my friends came to me and shared everything. But the thing he didn't tell the police was that I suggested him about those sites and I also had btc. He understands that the site has no problems, but the scammers are bad people.

Now I feel worried about whether it is truly safe to use P2P. If we fall for such a kind of scam, Though I still didn't and I always verified and 100+ order completed people plus checked his review and 100% review gained people. And I want to know if you guys have any such experience on p2p? Please share your story.

[hilariousetc]

Now I feel worried about whether it is truly safe to use P2P. If we fall for such a kind of scam, Though I still didn't and I always verified and 100+ order completed people plus checked his review and 100% review gained people. And I want to know if you guys have any such experience on p2p? Please share your story.

The sad truth is is that with bank transfers basically anyone can say 'my account was hacked' or that they didn't authorise the payment and the bank will probably take their word for it. Once the bitcoin has been sent then there's no way to recover it and that's the risk you take when you accept his sorts of payments so weigh up the risk when you're engaging in them.

Now he is dealing with someone who gives a good return and is also our country's man. My friend fixed a deal with him and the deal will be a bank transaction. The scammer sent money to my friend and my friend got a deposit message from his bank.

I would be vary weary of anyone giving you a 'good deal' because they often end up the opposite like this case. You should stick to people with a long history of good deals/feedback and build up a rapport with a reputable one and stick to them rather than chancing it on others, but be aware many people can do a handful of smaller good deals to then scam at the first chance you trust them with a big amount. Check the Currency Exchange board here as there will be lots of reputable sellers.

[Imran232]

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Yes sir you are right. We should always deal with good deals/feedback person. Here are the mistake what i have done that i didn't mention about the thing that which type of person he should deals what i forgot. And i thought he is freelancer and he can complete that deal easily. But i was wrong now i feels soo sad. And one more thing he didn't get his money back not from that p2p site and second the bank can't help im this case. The amount what is in hold in bank the amount will be return to the owners account. He lost $3k. Money dosen't a big thing but that case is a big thing. I feel so irresponsible.

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Yeah i know and i mentioned him about that exchange but binance kyc was a pain for him.

And another thing if i mentioned him my dealer whom i deal then it will also be okay. But now what i can do the thing had occur which is a sadest part.

[avikz]

Now he is dealing with someone who gives a good return and is also our country's man. My friend fixed a deal with him and the deal will be a bank transaction. The scammer sent money to my friend and my friend got a deposit message from his bank.

There are certain thumb rules to deal in p2p trading websites. I have been using few p2p trading sites since last 3 years and by God's grace didn't have to face any issues. Let me list out the rules I follow,

1. Check the most recent feedbacks of the trader. See if any positive feedbacks are received in last 72 hours.
2. Now go to those people's account who has left a feedback to your preferred trader and see that they are genuine and has a good amount of trades registered in their name.
2. Check the negative feedbacks and their dates. If the negative feedbacks are recent, stay clear.
3. Never trade with newbie traders. It's a big no no.

If these thumb rules are followed, most likely we won't have to face any issue. It's sad that your friend had to face such issues for no mistakes at his end.

[arwin100]

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Yes sir you are right. We should always deal with good deals/feedback person. Here are the mistake what i have done that i didn't mention about the thing that which type of person he should deals what i forgot. And i thought he is freelancer and he can complete that deal easily. But i was wrong now i feels soo sad. And one more thing he didn't get his money back not from that p2p site and second the bank can't help im this case. The amount what is in hold in bank the amount will be return to the owners account. He lost $3k. Money dosen't a big thing but that case is a big thing. I feel so irresponsible.

It's so sad to hear the story of your friend but I think he can show the evidence that he did a clean deal between that claimants he can show the message history between the deal and maybe it can help as his defense towards this case. I'm not expert in the law about this kind of incident so maybe they should get a good attorney to defend his case since its really unfortunate to get arrested by just doing a p2p transaction. And maybe this is a wake up call to anyone to not trust easily to any person you deal on internet.

[NeuroticFish]

Now I feel worried about whether it is truly safe to use P2P.

Well, I was always wary about P2P exactly because of this: some can too easy reverse even bank transfers and you will lose money and may even get into other troubles.
I guess that this kind of cases are rare, but they do happen now and then. Bitcoin being illegal in your country makes everything even worse.

@avikz list of rules is pretty good, but truth is, you can never be 100% certain (even feedback can be bought/faked, isn't it?)


But I am pretty wary/negative on this kind of stuff. The thing is that although you can never be certain/100% safe, people do use P2P successfully, hence the number of scams is probably not too big.

[UmerIdrees]

Then my friend released bitcoin. Here is everything perfect. But the problem starts from now. After 5 hours in the afternoon, my friend goes to the bank to withdraw the cash because he needs it. The bank manager says the money is in hold because they got information from the sending branch of the bank that the account holder of the sender has filed a case about this transaction. This transaction is not made via the account holder. That means this has become a hacking case.

Ok so the sender first send the money and once he got bitcoin, he calls to bank that this transaction is done by someone else and should be reverted . Not only this but bank thinks that the hacker is the one in whom account the money is sent to, so they arrest your friend. That's a sad story because you cannot file a case at binance too because nothing was wrong till the time of transaction.

And after 1 hour, police came and arrested my friends for hacking. But my friends don't hack. After the introgression My friends tell them everything and show them proof, then they trust them. But my friend uses bitcoin and bitcoin is illegal in our country. He is a freelancer, and in our country, freelancers get priority from the government. Cyber experts got proof that he was taking payments in bitcoin because he had a problem with paypal. And the clints approach him. Then he was released on a bail basis. And cyber experts are now working on it and the case is running. 3 days ago, my friends came to me and shared everything. But the thing he didn't tell the police was that I suggested him about those sites and I also had btc. He understands that the site has no problems, but the scammers are bad people.

Yeah, even if he gets save from the first case, he will be arrested for using bitcoin which is illegal. By the way can you tell me in which country this case happened ?

[Kong Hey Pakboy]

In Biance trading, I will find a fixed merchant to trade. P2P needs a guarantor, generally not bank transfer, but cash transaction. I'm sorry to hear about your friend, but I think this problem can be avoided if we use a trusted exchange.

If you read it, you would know that OP's friend doesn't want anything to do with KYC so he goes for P2P. This is a scary experience to be honest, I'm pretty impressed that you're friend's cool about all this thing and the arrest and interrogation, I would've pissed my pants if I was in that position.

[NotATether]

You probably won't get arrested for your KYC getting rejected at least. The worst case is that the platform just never accepts your applications again.

I'm curious to know what are the names of the P2P sites you recommended to your friend. If I remember correctly, localbitcoins also cracked down with KYC recently as well, so I'm curious to know what P2P services people are using to exchange bitcoin for bank transfers these days.

[LimLims]

In P2P deals there is always risk of getting scammed.
If your money is too valuable for you then just complete the KYC in the exchange and get the money from the exchange itself.
Moreover if you are bound to do P2P deals, then find a trader who has a good reputation and offering normal deals.
I am praying that your friend will get justice soon.
And yes if possible keep us updated with the case.

[NotFuzzyWarm]

In the OP the poster wrote

But my friend uses bitcoin and bitcoin is illegal in our country.

That, in a nutshell is the crux of his problem. Despite the fact that you and him know that is illegal in your country you still chose to use BTC and are now bemoaning the predictable results of your illegal activity?  

While I will agree that it is a shame that your government has declared crypto illegal, nonetheless you were knowingly breaking the law so no pity from here folks.

[marilynmanson21]

you and your friends know bitcoin is illegal in your country still committing violations with bitcoin transactions, I think p2p is not a problem, only when the bank suspects that there is a large enough incoming fund, so the bank looks for info on the source of your funds, it could be that the bank is suspicious of your friend do money laundering,
My message is to avoid large and unnatural transactions if we don't have a real business such as a shop,

[Kelvinid]

The problem is that the use and any Bitcoin transactions are illegal. Maybe your friend was just caught with the authorities and that leads to an arrest for the said violation not because it was a P2P scam. Too sad but first we have to look into some instances that it will possibly be going to happen if we are not careful on this. That is very important to have some background check on the person we talk to online especially when it was new and most especially when it was illegal in our place. That is something we need to be aware of and this will happen to anyone, even at you OP. Well, I hope not.

[electronicash]

so your friend basically is the victim here but still got arrested for using BTC which the country declares it illegal. what a tragic situation. this is a very clever scammer. he probably target such user to make transaction with because he knew he is from a country that illegalized BTC.

p2p still needs kyc. you even provide bank details when using p2p platform.

[BlackHatCoiner]

Sorry for your losses, but I'll have to agree with @NotFuzzyWarm here. Since it's illegal to use Bitcoin in your country and you do acknowledge that fact, no matter how much “liberation” you ensure with p2p trading, you're a criminal, because your country's government disagrees with what you do.

Whether that's against your ideal outlook or not, the arrestment is justified.

[Charles-Tim]

Sorry for your losses, but I'll have to agree with @NotFuzzyWarm here. Since it's illegal to use Bitcoin in your country and you do acknowledge that fact, no matter how much “liberation” you ensure with p2p trading, you're a criminal, because your country's government disagrees with what you do.

It depends. Like in Nigeria, CBN ban cryptocurrencies but using P2P is beyond what they can ban, such ban should be from the legislative arm which would be signed by the president. So, we do not know how the ban is in their country. In Nigeria, we trade cryptocurrencies legally with a secondary school and a hotel even later accepted bitcoin for payment after the ban.

Even if cryptocurrencies are legal in their country, that will lead to loss. Assuming he used exchanges like Binance, it is possible for him to still be able to appeal that the money was sent from a scammer, but provided if the criminal has not withdrawn the Bitcoin. If they also make use of direct P2P, the transaction can not be reversed. So, it can still result to loss irrespective of Bitcoin legal or not in his country.

So far the name of the platform for the p2p is not mentioned, likely such platform are not recommended, and this is the risky/faulty part.

[pawanjain]

Damn that's one terrifying case especially if you are new to crypto. But it's quite common in crypto. Scams like these have been going around since years.
We have to be very careful while dealing in crypto and especially when we are doing P2P transactions.
P2P is risky and can lead us to trouble just like your friend is in. It would have been better if he would have used some local exchange which supports their native currency.
You could have tried harder to find some way to get around KYC.
I think you and your friend don't need to worry here because you didn't do anything wrong.

[franky1]

Then my friend released bitcoin. Here is everything perfect. But the problem starts from now. After 5 hours in the afternoon, my friend goes to the bank to withdraw the cash because he needs it. The bank manager says the money is in hold because they got information from the sending branch of the bank that the account holder of the sender has filed a case about this transaction. This transaction is not made via the account holder. That means this has become a hacking case.

your friend is a victim of a thing called a "chargeback scam"

this is where someone sends funds. gets the goods/services/coin. and then makes a fake claim that the funds were taken from their account without authorisation.

the account holder is the scammer. but is pretending he got hacked to get his refund

the scammer gets refunded and the victim gets accused of being a thief

[BlackHatCoiner]

Like in Nigeria, CBN ban cryptocurrencies but using P2P is beyond what they can ban

I wouldn't say it's beyond their abilities, but even if we assume it is, it's false thought to go against the system just because you may not be checked by it.

If you've found a car with its door open and the keys left on the seat and ensure that no one will ever catch you, you become a criminal if you steal it; if some cops patrolled that moment they should arrest you. Same applies for this occasion. The guy used Bitcoin while its usage was illegal; whether he used a centralized exchange which would be quickly caught for doing or did it peer-to-peer, he's against the law.

When you ban cryptocurrencies, you aren't banning the way you'll send/receive them. You simply ban having them.

So, we do not know how the ban is in their country.

I'm sure that if some government decided to make Bitcoin illegal, they'd consider its original usage (p2p) illicit activity too.

[kryptqnick]

I feel too asocial for p2p exchanges, and I don't trust people enough, especially when it comes to dealing with finances. That's why I prefer centralized services that do the job for me, and I don't have to worry about meeting an unfair merchant. What is a big part of the problem your friend faces is Bitcoin being illegal in your country (sorry to hear that). Otherwise, it would have been just the risk of losing some money, but now it's the risk of losing some freedom if I understand correctly. I hope it works out, and your friend it cleared off scamming charges, but what kind of punishment is he facing for using Bitcoin?