Coinbase freezing funds because there's no official documents of betting.

[Adiljutt156]

I don't even know how it got piled up, but he surely didn't put them there at once.

So many zeros to be messing around with on centralized systems. This is something that makes me run away from anything centralized.

I don't even see why I would have such amount of money and want to give control to a site, more worse Coinbase. Now since the money is coming from his gambling they will find more faults to validate their actions and withhold his money from him.

The solution? Avoid giving control of funds to their party.

it never ends well, not for long.

Centralized exchanges always do tricks like this for having money under their control, while Coinbase has a history of things like this. Just because this has never been done in any business at this level, I have my lesson from a few years back: not your keys, not your coins, so I am doing my own safety always, preferably because they are having many rules and regulations to block accounts and freeze funds without giving any exemption.

No doubt it's a big amount, and now chances are high this person is also going to face some issues through agencies as well because they are surely going to be informed, and then their investigation is going to be started about how he did this even though he is a stake client, but they are also not going to stand with him due to the use of VPN, as USA citizens are not allowed to play on this platform.

[promise444c5]

I believe that in regulated casinos, you can ask for all betting data. At least EU citizens have law on their side and casinos are required to give all the data they have about the user activity if they choose to request it. That can take couple of months, but resolving these issues take time anyway.

Yes, they can contact the casino through their support and request for their deposit and withdrawal histories , including the betting histories if needed[regulated or not,  doesn’t really matter for that]

The only problem is they as a gambler could be breaking some rules in their jurisdiction or country by admitting they gambled and made such money on an offshore Casino, especially if there’re tax or gambling restrictions involved [illegal gambling]. which can also lead to legal or tax problems in some jurisdictions .

“Not your keys not your coin”..

[Dogedegen]

Whoa! 900 000$ is a very huge amount of money, it's not a joke actually. There are many questions that come to my mind when I read that, actually. First, why did they put
such a large amount in coinbase?

This is a small amount of money compared to large customers that Coinbase has, and even more compared to institutions. If some amount of money is big for you and me, that does not mean that the amount of money is big. There are people who have tens or even hundreds of millions on Coinbase and they have no problem. The issue is not with the amount of money, the issue is about its suspected origins and the shady person that is behind this transaction. People who are rich or people who have very clean sources of funds and good documents do not have problems depositing even larger amounts and they accounts do not get frozen. For many transactions they are not even asked for source of funds based on their profile and history with the exchange.

I believe that in regulated casinos, you can ask for all betting data. At least EU citizens have law on their side and casinos are required to give all the data they have about the user activity if they choose to request it. That can take couple of months, but resolving these issues take time anyway.

Yes, they can contact the casino through their support and request for their deposit and withdrawal histories , including the betting histories if needed[regulated or not,  doesn’t really matter for that]

The only problem is they as a gambler could be breaking some rules in their jurisdiction or country by admitting they gambled and made such money on an offshore Casino, especially if there’re tax or gambling restrictions involved [illegal gambling]. which can also lead to legal or tax problems in some jurisdictions .

“Not your keys not your coin”..

This will not help them. We have established here that it is very likely the user broke the terms and conditions and possibly even used a fake ID, they have committed several crimes to get this money. The money is fraudulent and Coinbase will not accept it. It would surprise me if they unfreeze it to send it back to him and close his account. The situation is high profile because of the many crimes that are committed and high possibility of money laundering, so it is possible that he will not get any of this money back.

[WhoYouCantKill]

Yes, they can contact the casino through their support and request for their deposit and withdrawal histories , including the betting histories if needed[regulated or not,  doesn’t really matter for that]

The only problem is they as a gambler could be breaking some rules in their jurisdiction or country by admitting they gambled and made such money on an offshore Casino, especially if there’re tax or gambling restrictions involved [illegal gambling]. which can also lead to legal or tax problems in some jurisdictions .

Yeah he could, but simply getting his complete transaction history doesn’t automatically makes the money quite easy to explain you know. Because even if the records manage to explain and prove where the money actually came from, the player would/might still be exposed to certain questions about whether the gambling itself is an activity that’s permitted under the local laws in that jurisdiction or whether the winnings are taxable. So yeah, keeping records is only useful to an extent, but the more important thing is understanding the rules in your jurisdiction.

[stadus]

This is one reason why one should keep a detailed spreadsheet of your betting history.

It does not prove the source of funds. it has to be verifiable, aside from spreadsheet it has to be backed with the appropriate documents.

Let me start by approaching this in good faith and assume that user is not lying. Then only thing that would work their favor is to keep as detailed data of their betting history as possible.

I believe that in regulated casinos, you can ask for all betting data. At least EU citizens have law on their side and casinos are required to give all the data they have about the user activity if they choose to request it. That can take couple of months, but resolving these issues take time anyway.

That is possible if he is really telling the truth, and casino has to cooperate with him as he is their client.
With the right documents and correct justification, this should be solve but the questions is how long.

Either case, imho the issue to resolve is with the casino, not with the exchange. Exchange is just following the law and won't be accepting vague data, because it's their license on the line.

But in this case, i genuinely believe this is about money laundering. Because why wouldn't the user contact to police or a lawyer if the money is legally theirs?

As long as he can provide the request of the exchange, that funds that are temporarily frozen will be release.

[Julien_Olynpic]

There's a lot that's unclear about this story, and we'll likely never know the truth, as both Coinbase and the user could be misleading everyone else. The user's desire to send such funds to a centralized exchange known for its negative attitude toward gambling-related funds is unclear. Any reasonable user would think twice before sending their cryptocurrency to Coinbase.
As for the theory of money laundering by rogue states like Iran, that's also a plausible possibility. But the evidence, in my opinion, is extremely scant.

[Russlenat]

There's a lot that's unclear about this story, and we'll likely never know the truth, as both Coinbase and the user could be misleading everyone else. The user's desire to send such funds to a centralized exchange known for its negative attitude toward gambling-related funds is unclear. Any reasonable user would think twice before sending their cryptocurrency to Coinbase.
As for the theory of money laundering by rogue states like Iran, that's also a plausible possibility. But the evidence, in my opinion, is extremely scant.

This story might be true but what the exchange demand is within their rules.

Proof of source(s) of funds and wealth documents

https://help.coinbase.com/en/coinbase/managing-my-account/other/proof-of-source-of-funds-and-wealth-documents

As a regulated financial services company, we’re required to keep customer information up to date for a safe trading experience. We may ask you for documentary evidence to ensure we have the information we need to remain compliant.

Documents will only be accepted through a secure portal. You can upload documents in an Support chat by selecting the attachment clip icon, or in the link sent to your email.

he just have to comply with the required procedure and wait for its result. I think the one who complain conclude too early. He sign up coinbase without reading the terms, so it's his fault.

BTW, here's the source of the post.

[naikturun]

Why did he keep up to $900000 on Coinbase? They will see the warning, but they will not listen until they are affected.

Another thing is that crypto users know that Coinbase is hostile against gambling sites. People always prefer avoiding sending coins to Coinbase directly from gambling sites even if the gambling site is legally operating, Coinbase have seized many like that before.

But in this case, i genuinely believe this is about money laundering. Because why wouldn't the user contact to police or a lawyer if the money is legally theirs?

Not having evidence still does not prove anything, but it could be the reason.

why coinbase do that, i mean, Isn't gambling legal there, and the taxes are very high there, why would coinbase freeze people's accounts just for that reason, it's a bit unreasonable?

[Outhue]

The tricky werewolf guy is the culprit not the victim, he is into money laundering of sort, so he deserves what he got I think you readers should always read OP completely before you make comments on the forum, it's been proven that he is also not innocent, there are many people like this dude who do crazy things and when they got caught they will want to use the public to their own advantage, Coinbase is a centralised exchange, if they noticed any fraudulent or illegal activities they will surely take actions, I know they are centralised but they can't let this illegal act slides, they did the right thing and I will never blame them for it.

[Zlantann]

There's a lot that's unclear about this story, and we'll likely never know the truth, as both Coinbase and the user could be misleading everyone else. The user's desire to send such funds to a centralized exchange known for its negative attitude toward gambling-related funds is unclear. Any reasonable user would think twice before sending their cryptocurrency to Coinbase.
As for the theory of money laundering by rogue states like Iran, that's also a plausible possibility. But the evidence, in my opinion, is extremely scant.

Maybe he failed to do a proper investigation before sending his funds to Coinbase. He should have also known that keeping such an amount in an exchange would attract suspicion. He would have either moved it to a self-custody wallet or split the amount across different exchanges. They would have to prove that the money came from a legitimate source or lose the money. Authorities will always suspect Iran, Russia, North Korea, and a few others in crypto money laundering cases. I keep wondering if crimes don't happen in other countries.

[Barikui1]

Maybe he failed to do a proper investigation before sending his funds to Coinbase. He should have also known that keeping such an amount in an exchange would attract suspicion. He would have either moved it to a self-custody wallet or split the amount across different exchanges. They would have to prove that the money came from a legitimate source or lose the money. Authorities will always suspect Iran, Russia, North Korea, and a few others in crypto money laundering cases. I keep wondering if crimes don't happen in other countries.

Sometimes people feel reluctant to do a minor research that would have gone a long way in saving them from all these troubles, but coin base should have been able to provide a valuable reason with an evidence, why the users funds were frozen, because it makes no sense that because he cannot provide an official document of betting, he is automatically laundering money, that's not how things are being done, but if the said user is in good terms with the casino, he should have write to the casino to provide such documents for him and a reason why he needs it badly, but I guess that he may be doing something wrong, that's why the casino can't can't provide such documents for him.

[Awaklara]

The tricky werewolf guy is the culprit not the victim, he is into money laundering of sort, so he deserves what he got I think you readers should always read OP completely before you make comments on the forum, it's been proven that he is also not innocent, there are many people like this dude who do crazy things and when they got caught they will want to use the public to their own advantage, Coinbase is a centralised exchange, if they noticed any fraudulent or illegal activities they will surely take actions, I know they are centralised but they can't let this illegal act slides, they did the right thing and I will never blame them for it.

If the person does not feel they have made a mistake, they would definitely have taken legal action to process their case. Centralized exchanges or casinos have provisions that allow them to hold and freeze users' funds on their platforms in certain situations. Although from the customer's perspective it may seem unfair, if there is a problem, they must do it for the sake of the subsequent investigation.

[$crypto$]

This story might be true but what the exchange demand is within their rules.

Proof of source(s) of funds and wealth documents

https://help.coinbase.com/en/coinbase/managing-my-account/other/proof-of-source-of-funds-and-wealth-documents

As a regulated financial services company, we’re required to keep customer information up to date for a safe trading experience. We may ask you for documentary evidence to ensure we have the information we need to remain compliant.

Documents will only be accepted through a secure portal. You can upload documents in an Support chat by selecting the attachment clip icon, or in the link sent to your email.

he just have to comply with the required procedure and wait for its result. I think the one who complain conclude too early. He sign up coinbase without reading the terms, so it's his fault.

BTW, here's the source of the post.

I also saw coinbasesupport respond on /reddit to users for dropping into Modmail, not knowing where this case is going, about the possibility that the source document will be implemented and various other required documents.

Special attention --- the balance of large amounts entering the exchange from the source of gambling can be said to be sensitive, so it will take a long time to review.

[fighter2627]

The owner of coinbase got it without any trouble or it's just easy money on their part, as if they legally took money that wasn't theirs?

I don't really think money laundering would be the first thing that comes to mind. Since he literally sent the money from a betting platform to a centralized exchange like Coinbase, it was most likely just a regular investor moving his funds. The only problem I have with him is that he should have been aware that Coinbase does not allow funds coming from betting platforms.A few weeks ago, my exchange sent me a list of services that they don't allow deposits or withdrawals from. These are the kinds of updates we should always try to keep up with.

I just realized that deposits on local exchanges like coinbase do not allow or prohibit money from casinos. I used to think that as long as you deposit, there would be no problem,
but I was wrong in what I thought.

However, I hope that other communities who deposit on any local exchange will not rush to deposit a large amount of money on a platform
so that this issue does not happen to them.

[Ishicryptic]

The tricky werewolf guy is the culprit not the victim, he is into money laundering of sort, so he deserves what he got I think you readers should always read OP completely before you make comments on the forum, it's been proven that he is also not innocent, there are many people like this dude who do crazy things and when they got caught they will want to use the public to their own advantage, Coinbase is a centralised exchange, if they noticed any fraudulent or illegal activities they will surely take actions, I know they are centralised but they can't let this illegal act slides, they did the right thing and I will never blame them for it.

If the person does not feel they have made a mistake, they would definitely have taken legal action to process their case. Centralized exchanges or casinos have provisions that allow them to hold and freeze users' funds on their platforms in certain situations. Although from the customer's perspective it may seem unfair, if there is a problem, they must do it for the sake of the subsequent investigation.

If the guy is innocent I don't think that coming to social media to complain and taint Coinbase bad is his best option, he should pursue legal action against Coinbase, since it is a regulated exchange but it is most likely that he knows that he doesn't have a case against the exchange. Assuming he is innocent and using a regulated casino to gamble it would've been very easy for him to get all his gambling records from them that Coinbase was requesting before they will unfreeze his account. The matter is quite clear from the side of Coinbase, he should get all the details that they request and access his funds or forget about it, if the deposits were from money laundering then he should forget it and move on.

[Karl_3000]

I just realized that deposits on local exchanges like coinbase do not allow or prohibit money from casinos. I used to think that as long as you deposit, there would be no problem,
but I was wrong in what I thought.

I have sent money to many exchanges directly from gambling sites to the exchanges and nothing happened. Also I have not seen people complaining about the other exchanges before than Coinbase. It is only on Coinbase people are complaining and this is not the first time. It has started since many years ago.

[promise444c5]

~

This will not help them. We have established here that it is very likely the user broke the terms and conditions and possibly even used a fake ID, they have committed several crimes to get this money. The money is fraudulent and Coinbase will not accept it. It would surprise me if they unfreeze it to send it back to him and close his account. The situation is high profile because of the many crimes that are committed and high possibility of money laundering, so it is possible that he will not get any of this money back.

Maybe.. but the victim never mentioned anything related to that. Coinbase is kinda too sensitive to any asset coming from gambling or any assets coming from a big funded source [either it yours or not].

They are not the only one though, I know a couple of exchange that does that aswell..won’t mention their name but definitely not Bybit or Binance and I don’t really trust any of them either.

The point is that, they ask some more and more documents and verifications even the one they know that they or their source will never provide at some point..

Hence, I can’t really say who is at fault here without more detailed and honest information, yet at the end they probably will just tag it along to  their TOS even if he’s clean. But that doesn’t change the fact that the gambler could have also broken some jurisdiction rules by gambling in on an offshore casino as I’ve mentioned earlier.

[bakasabo]

I just realized that deposits on local exchanges like coinbase do not allow or prohibit money from casinos. I used to think that as long as you deposit, there would be no problem,
but I was wrong in what I thought.

I have sent money to many exchanges directly from gambling sites to the exchanges and nothing happened. Also I have not seen people complaining about the other exchanges before than Coinbase. It is only on Coinbase people are complaining and this is not the first time. It has started since many years ago.

I would add that yet nothing has happened to you. However, any exchange can trigger AML check and freeze funds until user provide documents that explain transaction and funds. It is a matter of time or luck when exchanges AML check will knock-knock to your virtual door and ask for explanations. I think nobody from exchange yet disturbed you because transactions were not frequent or amounts were not large.

I remember Poloniex , OKX, Kraken exchange were same as Coinbase against deposits from gambling sites.

[Zlantann]

Maybe.. but the victim never mentioned anything related to that. Coinbase is kinda too sensitive to any asset coming from gambling or any assets coming from a big funded source [either it yours or not].

There was an update to the news which showed that the victim did some shady stuff.

This user claimed to have won $900000 from offshore sportsbook.

However checking his past post history revealed the actual truth.

This guy had been betting from USA using VPN and fake ID!

Consequently no casino would provide him with official betting history and documentation. lol

Coinbase might have a bad reputation regarding funds connected to gambling and other financial systems. But in this case, they might be doing the right thing since it is alleged that the victim was using a VPN and a fake ID. The VPN issues might be waived in some cases. But using a fake ID is a more serious criminal offense.

[stompix]

I don't get why this is called money laundering. At the same time, he's breaking the ToS and U.S. law (if I understand correctly, he'd have to prove where the money came from if asked). So he has two problems here: one with the casino (which seems solved if he withdraws the money) and one with the exchange.
And here's the most interesting part: does the exchange really need his bet history, or does it just want to steal his money?

The exchange saw where the coins came from, so they obviously saw an US citizen getting money (and not little0 from a service that is not allowed in the US.
Also, no, fully regulated exchanges don't just grab your money and take it away, the whole thing will not happen without a court order, they have frozen his coins, if he can prove he owns them and they are not illegal funds, he will have them back, otherwise, they would go to the government, coinbase is not taking a share of that, it would be illegal and the SEC would be all over them.

Another thing: if the money is not stolen but earned in a way that was not legal in the US, it doesn't make them illegal; it's still his money, and he will face a different fine for that but he might get away avoiding 18 USC §1955 since he's not an organizer of illegal activity, he played illegally, so he might face charges but he might get his money (minus tax, lol, cause the IRS sees that as taxable income).

The tricky werewolf guy is the culprit not the victim, he is into money laundering of sort, so he deserves what he got I think you readers should always read OP completely before you make comments on the forum, it's been proven that he is also not innocent,

No, nothign has been proven and OP is the moron who doesn't understand what money laundering is!
He's the one who should cross the red line because it's pure bullshit, there is no money laundering here, but what can you expect from a quota poster

Coinbase might have a bad reputation regarding funds connected to gambling and other financial systems. But in this case, they might be doing the right thing since it is alleged that the victim was using a VPN and a fake ID. The VPN issues might be waived in some cases. But using a fake ID is a more serious criminal offense.

No, it's not it's a class misdemeanor in most states.
He used a fake non-U.S. ID to access a site that bans US citizens, so....what crime was that on US soil on US laws?
The ID is not stolen but completely fake; it's not even identity theft, there is no victim.

So, what crime has he commited?
Try to not waste water on this again!