Based on our investigation, we believe the way Lizex operates is as follows:
When a user sends funds to Lizex, the funds are first transferred to a wallet controlled by Lizex. The transaction is then subjected to an AML screening process. If the transaction passes the AML checks, the funds are subsequently forwarded to their liquidity providers/liquidators.
However, in cases where a transaction receives a high-risk AML score, our understanding is that Lizex places the funds on hold and requests KYC from the customer. This creates a situation where, if the customer is unable or unwilling to complete KYC, the funds may remain under Lizex's control. If the customer does complete the requested KYC, the funds may then be released or forwarded through their normal liquidity process.
Based on the circumstances surrounding the mabji1's case, we believe the funds are currently being held by Lizex while additional time is being gained through the AML/KYC process.
If our findings are accurate, this would raise serious concerns about the way Lizex handles high-risk transactions and customer funds. We would characterize the behavior as
potentially selective or conditional misconduct, rather than a straightforward technical AML procedure.
This presents a potentially significant risk to users, particularly where funds can remain under the platform's control while the customer is subjected to additional AML/KYC requirements. For this reason, and based on the findings of our investigation, we are tagging Lizex as a
Potential Risk Project. Users should exercise caution and conduct thorough due diligence before sending funds to the platform.
https://welivecrypto.com/projects/lizex
