EXOLIX SENT ME STOLEN COINS, AND MY FUNDS ARE BLOCKED — $11,000

[bitmover]

Let's say you're a restaurant owner, and a terrorist had a meal. He pays with his debit card, and you receive his money. I don't think your account will be frozen for that. If it's a bigger amount, say for buying a car, it's still totally fine as long as it goes through the banking system. If they want to freeze it, they should have frozen it at an earlier stage, not when it reaches your account. And that's part of the problem with crypto: some services freeze funds, others do not.

Yeah, I have been thinking about this situation as well...

Certainly it is similar. And even a doctor may find himself in such situation, where a terrorist had a medical appointment and paid with a wire transfer. Will the doctor have a problem in such situation?

I think in crypto things are just going way too far...

[LoyceV]

I think in crypto things are just going way too far...

Exchanges fear regulators, not their users. So they stay on the safe side for their own interests.

[examplens]

I think in crypto things are just going way too far...

Exchanges fear regulators, not their users. So they stay on the safe side for their own interests.

Regulators could define this part a little better, rather than regulating by instilling fear in exchanges. For example, to know exactly which exchanges have the right to freeze user funds, because we increasingly see that anyone can take someone's coins under the pretext of AML.
If funds are already frozen, the regulator must prescribe the exact procedure for what happens with such coins. In what period of time must it be resolved, and in what ways. As well as what sanctions exchangers bear in case they behave outside such rules.

[LoyceV]

If funds are already frozen, the regulator must prescribe the exact procedure for what happens with such coins.

That's where the shady part begins. Ironic, isn't it? I've seen many anonymous exchanges use regulations as an excuse to freeze funds, without even specififying which regulator of which country that would be.

[bitmover]

I think in crypto things are just going way too far...

Exchanges fear regulators, not their users. So they stay on the safe side for their own interests.

Because regulations do not protect uses as they should. They worry just about AML, and dont care if innocent people lose their money in this war against money laundry...

This is a wrong approach.

Regulations should be protecting users as well. As examplens mentioned, period of times to release funds, what documents they can ask, etc..

[joker_josue]

Because regulations do not protect uses as they should. They worry just about AML, and dont care if innocent people lose their money in this war against money laundry...

They don't care, because for them the one who gets the money stuck is because it's true.

I go further. When a platform, no matter how regulated, that after freezing the funds, they actually inform the authorities
Honestly, I think in many cases they never say anything to the authorities. They act on their own initiative, under the excuse that they may (it does not mean that it will happen) have to give explanations to the authorities.

On the other hand, since regulators don't seek to know how the Bitcoin network works, they apply meaningless rules, which only further fuels fraud.

[Skjadoon]

This is the response I get from them every day. I ask daily, and at first, they say they will check, then disappear for a couple of hours. When they come back, they say there’s no update. That’s the whole story

See how Exolix operates and how trustworthy they are.

My $11,000 has now decreased in value to only $8,000

who is responsible for covering this loss?

[Skjadoon]

No update.

Now they don't even respond me on live chat.

[ScamViruS]

No update.

Now they don't even respond me on live chat.

They have no answer to give you, which is why they are not responding to you. It is really sad that you are facing a financial loss due to the mistakes of others even though you have not done anything illegal. I think EXOLIX should take immediate action to compensate you for this loss if they really intend to run their business legally. Because it was their own mistake here, there is no point in you suffering for their mistake.

[Skjadoon]

No update.

What does it mean?

[CreepyUncleJoe]

That means it's time for you to contact BTSE, the exchange that's freezing your funds, explain the situation, provide proof, and demand they unfreeze them.

[logfiles]

That means it's time for you to contact BTSE, the exchange that's freezing your funds, explain the situation, provide proof, and demand they unfreeze them.

You expect BTSE to unfreeze "stolen funds" just like that?

I don't think it's possible. One of the reasons they are frozen then in the first place is probably because of the fund recovery effort to wherever they were stolen from. Defying any directives, especially from the law enforcement could mean that their license is in Jeopardy.

[bitmover]

That means it's time for you to contact BTSE, the exchange that's freezing your funds, explain the situation, provide proof, and demand they unfreeze them.

You expect BTSE to unfreeze "stolen funds" just like that?

I don't think it's possible. One of the reasons they are frozen then in the first place is probably because of the fund recovery effort to wherever they were stolen from. Defying any directives, especially from the law enforcement could mean that their license is in Jeopardy.

He just need to prove that he didnt steal any funds. That funda came from exolix.

I think it is possible  that they wont freeze funds from innocent people, acusing them to be hackers When they clearly arent.
However,  it might take a while and they might be difficult to contact

[CreepyUncleJoe]

You expect BTSE to unfreeze "stolen funds" just like that?

I don't think it's possible. One of the reasons they are frozen then in the first place is probably because of the fund recovery effort to wherever they were stolen from. Defying any directives, especially from the law enforcement could mean that their license is in Jeopardy.

If everything we’re reading here is true, then the thief swapped the stolen ETH on Exolix into some other crypto. Meaning the stolen coins ended up in Exolix’s wallet.

This user later swapped his own XMR for ETH on Exolix and got paid out with the ETH Exolix had in their wallet at the time. That’s the ETH he sent to BTSE. So he didn’t deposit stolen ETH but the ETH he legitimately received from his XMR trade.

Now he just needs to prove that to BTSE. They’ll probably want to see the swap details, TXIDs, screenshots, everything.

Where’s the actual stolen money? No idea. It’s probably on some other chain by now and already laundered further. If law enforcement or whoever is investigating wants the real trail, they’ll have to contact Exolix and request the relevant info.

[examplens]

If everything we’re reading here is true, then the thief swapped the stolen ETH on Exolix into some other crypto. Meaning the stolen coins ended up in Exolix’s wallet.

This user later swapped his own XMR for ETH on Exolix and got paid out with the ETH Exolix had in their wallet at the time. That’s the ETH he sent to BTSE. So he didn’t deposit stolen ETH but the ETH he legitimately received from his XMR trade.

Now he just needs to prove that to BTSE. They’ll probably want to see the swap details, TXIDs, screenshots, everything.

In some ideal scenario, it would look like that, but the reality is quite different. BTSE, like most shady exchanges, selectively applies regulation. They are quite up-to-date when it comes to freezing funds, but they have no idea how to manage the case going forward.
I'm waiting for the day when someone will sue these exchanges and win in court. I hope the penalties will be adequate.

[logfiles]

He just need to prove that he didnt steal any funds. That funda came from exolix.

I think it is possible  that they wont freeze funds from innocent people, acusing them to be hackers When they clearly arent.
However,  it might take a while and they might be difficult to contact

This is where Exolix needs to own it up and step up to help him out, otherwise someone is going to have to take the blame, and unfortunately right now the blame is on an innocent person.
They will make him do all that KYC crap but without any help, those funds may remain frozen.

If everything we’re reading here is true, then the thief swapped the stolen ETH on Exolix into some other crypto. Meaning the stolen coins ended up in Exolix’s wallet.

This user later swapped his own XMR for ETH on Exolix and got paid out with the ETH Exolix had in their wallet at the time. That’s the ETH he sent to BTSE. So he didn’t deposit stolen ETH but the ETH he legitimately received from his XMR trade.

Now he just needs to prove that to BTSE. They’ll probably want to see the swap details, TXIDs, screenshots, everything.

Where’s the actual stolen money? No idea. It’s probably on some other chain by now and already laundered further. If law enforcement or whoever is investigating wants the real trail, they’ll have to contact Exolix and request the relevant info.

We can't turn a blind eye to the fact the Exolix decided to distribute stolen funds to its user and wanted him to send back the frozen funds before receiving a refund. Do you think it's fair? Personally, I don't think so

Also, the actual stolen money is the ETH that has been tracked and labelled as it's transferred from wallet to wallet across the blockchain. I am not saying OP stole, but someone duped him into holding the stolen funds in exchange for his funds.

[Skjadoon]

Now he just needs to prove that to BTSE. They’ll probably want to see the swap details, TXIDs, screenshots, everything.

Are you sure? you’re just making things up and acting like you’re right? The coin was stolen. No one will unlock it just based on swap details and screenshots. There you go another troll comment here. I already posted what they want above, but I will post it again. Please take a minute to read it.

Furthermore, Exolix still doesn’t care and hasn’t replied to the live chat anymore. What the heck is going on? I really don’t understand. Even when they get flagged, they don’t care. I don’t know what to do. I’m not going to share what BTSE asked from them because of Exolix's mistake why should I have to fulfill all these requirements?

   Please state your source of funds and source of wealth.

    Salary and earnings
    Savings
    Sale of financial assets
    Sale of real estate
    Reimbursements
    Inheritance/donation
    Other (Please state)

    Please provide bank statements or applicable documentation to corroborate the information mentioned in point 1 above for the last 3 to 6 months.
    What is your estimated liquid net worth (in EUR)?
    Kindly provide bank statements to corroborate at least 50% of the amount declared in point 3 above net worth.
    Please state your purpose in applying for a BTSE account? (Investing / Trading / Trading on other exchanges / Business / Cash out my cryptocurrencies / Other)


Additionally, please provide the following:
​

    Clear photo of your ID (front and back) or Passport
    A selfie holding the same proof of identification
    Proof of Address (POA) document that is issued within the last 3 months and in PDF Format. Below is a list for the acceptable proof of address, you may send ANY of the following:
          1. Bank Statement / Account Statement
          2. Credit Card Bill
          3. Utility Bill (Gas Bill / Water Bill / Electricity Bill)
          4. Lease Agreement

That means it's time for you to contact BTSE, the exchange that's freezing your funds, explain the situation, provide proof, and demand they unfreeze them.

You expect BTSE to unfreeze "stolen funds" just like that?

I don't think it's possible. One of the reasons they are frozen then in the first place is probably because of the fund recovery effort to wherever they were stolen from. Defying any directives, especially from the law enforcement could mean that their license is in Jeopardy.

This seems like another troll comment. I suspect some might be connected to Exolix, coming here to twist the story or make it seem simpler than it actually is. This guy CreepyUncleJoe is the only one Opposition in our flag. (https://bitcointalk.org/index.php?action=trust;u=2635081)

They don’t even understand what a stolen coin is or how it could affect you. I think there’s no point in responding to them.

[Pmalek]

This seems like another troll comment. I suspect some might be connected to Exolix, coming here to twist the story or make it seem simpler than it actually is. This guy CreepyUncleJoe is the only one Opposition in our flag. (https://bitcointalk.org/index.php?action=trust;u=2635081)

I don't think CreepyUncleJoe is associated with Exolix, at least not publicly. I took a quick look at his post history, and he often comments in scam accusations on the forum. Only your case is related to Exolix. The rest are usually accusations against different crypto casinos. I don't know why he opposed the flag, though. But it doesn't really matter since it's not a vote from a DT member and there is enough support for the flag to stand.

[The Cryptovator]

Sad to hear you lost funds with Exolix; I was their campaign manager on the forum. But for a long time I don't have any communication with them. At the beginning I found them trustworthy; I don't know how they turned into a shady exchange. This kind of behaviour from the exchange isn't accepted here. Based on the situation, I have removed my positive feedback from their profile, though it was just campaign-related, not platform-related. Sorry for the late notice of this scam accusation.

Based on the Exolix statement, they should compensate the funds. Because they admit their mistakes, and they have to suffer if they want to continue their business. Seems they are inactive on the forum, but I will send a PM to come on this thread. Hope they will get an email notification regarding the PM. Unless they solve this thread, then I will tag them as well. It's their responsibility to make sure the funds aren't related to any crime. Users trust them; hence, they are using this exchange. They have to compensate at any cost.

[rat03gopoh]

I don't know why he opposed the flag, though.

He previously argued that the accusation should be for BTSE, not Exolix. I think that's why he's against the flag.
Recounting the chronology:

• (4:17:23 PM) OP(A)'s wallet receives ETH from Exolix by swapping XMR.
• (4:57:23 PM) A sends that ETH to wallet B (owned by his client).
• (5:31:23 PM) A receives a dust transfer from wallet X associated with the "Fake_Phishing1250424" wallet.
  
• (6:02:59 PM) B sends ETH to wallet C, which I guess is the deposit address to BTSE, where the ETH remains frozen (but I can't confirm it's connected to BTSE because this appears to be the first deposit).
• (6:17:11 PM) B also receives a dust transfer from wallet Y associated with the "Fake_Phishing1250424" wallet.

The question is, who is behind the dust attack?
If I check the tx history, exolix took liquidity from the wallet labeled "layerswap1" in this transaction.

My presumptions: (1)This is either an organized dust attack targeting every address interacting with Exolix(and its partners); or (2)C it's simply a client's self-custody wallet intentionally contaminating its own transactions, in which case there's an attempt to extort Exolix by exploiting the OP (unless the OP confirms that their client isn't a criminal).

My belief is leaning towards the first assumption which means Exolix should be held accountable to OP. But I welcome any other assumptions.