⚠️ Warning: Pionex blocked my withdrawal after KYC1 – no prior notice

[Kohyar1987]

Hello everyone,

I'm reporting a serious issue with the Pionex exchange.

I deposited $800 USDT via TRC20 and after passing KYC1 (which they claim allows up to $20,000/day withdrawal), I traded down to $295. When I tried to withdraw, Pionex suddenly blocked the withdrawal and demanded full KYC2 – without warning.

They refused to explain or help, despite having clear evidence that I met all conditions.

I filed complaints with:
- FBI IC3
- CoinMarketCap
- CoinGecko
- Trustpilot
- OFAC

TXIDs:
- cc1661e0fdf832cb957d20459bb1463773a16085f4d4a355f90999dfae0b9f21
- 7776a859319581f55f93185ca144c0d1ebf9deb70ee0934cc7259f54092ee97e

Be very cautious with centralized exchanges like Pionex.

Thanks for reading.

[Kohyar1987]

https://postimg.cc/gallery/wtVKVrb

[albon]

I have displayed the images fully so they are visible to everyone.



Honestly, I have never tried exchanging on Pionex before, but what review sites show, especially Trustpilot, is that most of the reviews were unhappy with their experience. See the attached image below:



Therefore, I strongly believe that many people have faced the same issues you did, OP, with the difficulty of withdrawing their funds. However, you should have done your research first before choosing the exchange you would trade on and deposit your funds, and read the terms of service, KYC policies, and the procedures they might take if they discover something. May I ask, is there any issue with you completing KYC2?

[khaled0111]

There seems to be a contradiction here between what you said and what their support agent said.
You said that you " met all the conditions" while the support agent claims that you refused to complete kyc level-2.
So, did you pass kyc level-2 or not and if not why did you refuse to complete it?


I didn’t like the fact that they refused to tell you the reason why they are withholding your funds and asking you to submit your documents but, like any other centralized exchane, they are within their rights to do so.

[Potato Chips]

There seems to be a contradiction here between what you said and what their support agent said.
You said that you " met all the conditions" while the support agent claims that you refused to complete kyc level-2.

I think it's because OP thought he should be able to withdraw amounts up to $20,000/day as Pinonex apparently claimed under KYC 1—that he passed, thus he believes he "met all the conditions" for his $295 withdrawal request.

In reality, this would only be true under normal circumstances. As we all know, if by any chance, your account was flagged or something, further verification would be requested—standard process in most CEX.

Whether Pionex has a good reasoning for such action, I guess we may never know, though. Exploring legal options for this would be a luxury. The amount at risk also ain't worth it.

[The Cryptovator]

I deposited $800 USDT via TRC20 and after passing KYC1 (which they claim allows up to $20,000/day withdrawal), I traded down to $295. When I tried to withdraw, Pionex suddenly blocked the withdrawal and demanded full KYC2 – without warning.
~~
Be very cautious with centralized exchanges like Pionex.

Not only for Pionex, but you should be cautious with all the centralised exchanges when you are using them. They have a long Terms & Conditions that we often don't read but agree with during registration. That's the advantage all the exchanges take, and they ask for additional information this way. Before using any centralised exchange, you must need to read their terms. Because they have the right to ask for additional information at any time.

In your case, it seems they are asking for level-2 KYC, and you should comply in order to withdraw your funds. If you aren't ready to do full KYC, then don't use it to trade on a centralised exchange. Otherwise you will face the same issues. From the support, we can see you haven't complied with level-2 KYC, and they aren't allowing withdrawal for this reason. I don't think legal action would help to recover your funds unless you comply with KYC.

[logfiles]

I didn’t like the fact that they refused to tell you the reason why they are withholding your funds and asking you to submit your documents but, like any other centralized exchane, they are within their rights to do so.

If they are "investigating suspicious transactions or users", they won't reveal those details. But It's rare for some exchanges to just block funds because you refused to complete KYC verification. What they sometimes do is just let you withdraw your money while the other functions of the account remain blocked.

Regardless, OP either has to complete level 2 or KYC verification or forget about the funds. That's the unfortunate bit, since he signed up and accepted the terms of service knowing that they would ask for KYC verification at one point.

[khaled0111]

If they are "investigating suspicious transactions or users", they won't reveal those details. But It's rare for some exchanges to just block funds because you refused to complete KYC verification. What they sometimes do is just let you withdraw your money while the other functions of the account remain blocked.

They don’t have to share sensitive details or information that may compromise the investigation, but I believe it’s his right to know why he can’t withdraw his money. A simple message like "we detected some suspicous activity on your account and we are investigating it" won’t hurt.
And, tbh, few exchanges / service providers will let you withdraw your balance if you refuse to pass KYC, especially if they find you hve violated their terms or tried to cheat their system.

I think it's because OP thought he should be able to withdraw amounts up to $20,000/day as Pinonex apparently claimed under KYC 1—that he passed, thus he believes he "met all the conditions" for his $295 withdrawal request.

I guess you are right and that’s, indeed, what he meant to say. But, unfortunately, we all know that this is not how things work on centralized services.