Intersango still holding on to customers money (updated and resolved)

[bobajob]

UPDATE: Please see page 2 for a full explanation to this problem (straight from Intersango staff). All my money was eventually received when they said it would be. I've left my sarcastic / angry rants unedited.  

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From Intersango-
"The current lock on our Lloyds bank account is due to a technical glitch which should be resolved soon"

It took them 3 days to respond to a support ticket via their website regarding this situation. An auto-response would have sufficed.

Also, I find their reason, 'a technical glitch' to smell of bs. I have two merchant accounts, one Lloyds and the other HSBC, and in 5 plus years have never had, or heard of, an account being frozen for this length of time because of 'a technical glitch'. Usually if there is an IT problem, which itself is very rare, all merchants are effected. Not just one.

So, what precisely is going on here? Now Intersango have publicly stated the problem is 'a technical glitch', we won't get a straight answer from them (no company in their right mind would correct previous statements unless forced to). I therefore can only guess as to the real reason for them holding on to peoples money for 4+ days. Assuming it hasn't gone walkabouts with a rouge staff member.

Also, can anyone recommend an exchange that allows GBP deposits via uk bank transfers or Ukash? Preferably one that won't keep your money from you for 96+ hours with only a lame excuse to justify their actions?

[1713579385]

1713579385

[bulanula]

From Intersango-
"The current lock on our account is due to a technical glitch which should be resolved soon"

It took them 3 days to respond to a support ticket via their website regarding this situation. An auto-response would have sufficed.

Also, I find their reason, 'a technical glitch' to smell of bs. I have two merchant accounts, one Lloyds and the other HSBC, and in 5 plus years have never had, or heard of, an account being frozen for this length of time because of 'a technical glitch'. Usually if there is an IT problem, which itself is very rare, all merchants are effected. Not just one.

So, what precisely is going on here? Now Intersango have publicly stated the problem is 'a technical glitch', we won't get a straight answer from them (no company in their right mind would correct previous statements unless forced to). I therefore can only guess as to the real reason for them holding on to peoples money for 4+ days. Assuming it hasn't gone walkabouts with a rouge staff member.

Also, can anyone recommend an exchange that allows GBP deposits via uk bank transfers or Ukash? Preferably one that won't keep your money from you for 96+ hours with only a lame excuse to justify their actions?

Heh, and I was fooling enough to believe they could be trusted !

[realnowhereman]

I think it's more likely that the BS is from the bank.  genjix (and hence Intersango) is a pretty good guy.

Exactly the reasons you give mean a "technical glitch" is unlikely to affect only one customer.

More likely is that the bank are investigating Intersango, ready to (as usual) shut the account for no reason, or call the police.  They'll find calling the police isn't warranted (since Intersango aren't doing anything wrong), but they'll shut the account anyway.

In the meantime they've told Intersango that the problem is a "technical glitch" to keep them quiet.  Intersango have simply passed on that report.

I hope I'm wrong and that it all magically springs back into life; but if I were Intersango I would be looking for a new bank account right now.

[rjk]

Heh, and I was fooling enough to believe they could be trusted !

They can. Get on IRC and hit up #bitcoinconsultancy and talk to Genjix or PhantomCircuit.

Also, I find their reason, 'a technical glitch' to smell of bs. I have two merchant accounts, one Lloyds and the other HSBC, and in 5 plus years have never had, or heard of, an account being frozen for this length of time because of 'a technical glitch'. Usually if there is an IT problem, which itself is very rare, all merchants are effected. Not just one.

If you are so good at keeping the banks from closing your accounts, please try starting an exchange. From what I understand, the banks hate the multitudes of small wires, and flag them for review all too often. Also, look around - there are other threads with more details.

[bobajob]

From rjk
"If you are so good at keeping the banks from closing your accounts, please try starting an exchange. From what I understand, the banks hate the multitudes of small wires, and flag them for review all too often."

I retail and wholesale physical goods via the web. 70% via credit/debit cards (through Sagepay), the rest are bank transfers. Now I doubt the amount of transactions I process come anywhere near what an exchange would have to deal with, but still, I can't see why a legitimate business would have an account frozen. A multitude of legitimate small wires won't do it that's for certain.

I've had my HSBC a/c flagged for review due to suspicious transactions, but they didn't freeze my account. I was asked to a sit-down with the branch manager and had to explain a few of them. They asked for additional information that I supplied the next day, and got a phone call giving me the ok a week later. Not for a second did they freeze my account.

As for starting my own exchange? Not even remotely interested. Not least because I lack the technical skills

[bobajob]

From rjk
"Also, look around - there are other threads with more details"

Really? The only Intersango threads I've found relating to this current issue elaborate no further. Any chance of some links?

[Yankee (BitInstant)]

I love how the first assumption that comes to everyones mind is "OMG THERES A PROBLEM, HE'S STEALING EVERYONES MONEY AAHHH"

Why don't we give Amir or Patrick some time to explain and resolve the problem before we all cry apocalypse?

[jago25_98]

+1 on the guys being trustworthy.

It's only affecting the UK account:
Account title
    Interteni LTD
Bank
    Lloyds TSB
Account number
    47148668
Branch sort code
    30 64 57

LloydsTSB can't accept complaints from non customers on the phone so the address to write to is:

Customer Care
LLoydsTSB
125 Colmore rd,
Birmingham
B3 3SG

You can also complain to the bank you sent the payment from who will in turn complain to LloydsTSB.

I've lost a lot of cash to this. The payments haven't been bounced back.

[genjix]

(I'm from Intersango)

Our bank claims the processing queue has been filled because of our large order volume and they have to fix the technical issue which rarely happens. It is uncertain what they are up to- we did have smaller incidents in the past which were our account being flagged, and then one incident where they were being highly secretive and uncommunicative. Now they are talking to us but it seems to take time.

We have a face to face meeting with me, our director, our lawyer, and the bank's business manager and our bank account's relationship manager on the 26 Jan. Hopefully there something will be resolved and I will know more.

Apologies about the slower than usual support tickets- this comes at an unfortunate time for us when a) we are restructuring as a company internally b) meetings with investors all this week and c) the team is in various places for various reasons. We will be hiring new support staff by the end of this month to handle more of the tickets.

Anyway that's the best I can give you.

About the small wires: yes that is the reason, and that many people try to make fraudulent payments that get bounced. This makes any bitcoin account look suspicious. The small wires from many different unknown accounts are highly unusual from a bank's perspective. Our daily transaction volume is a few months transaction volume for the average bank customer.

[Coinbuck @ BTCLot]

Heh, and I was fooling enough to believe they could be trusted !

They're trusted, SEPA transfers are working fine.

[Seal]

Apologies about the slower than usual support tickets- this comes at an unfortunate time for us when a) we are restructuring as a company internally b) meetings with investors all this week and c) the team is in various places for various reasons. We will be hiring new support staff by the end of this month to handle more of the tickets.

I dont mean to be nosy but I'm curious.

A. How big is the company?
B. How are you going to operate profitably if you charge 0 fees and take 0% on trades? Is it all investor driven and are you open to investment opportunities?

Part of me wanting to know is because I'm reluctant to invest time and money into a trading account at a brokerage which will be here 1 day and gone the next. We've seen it happen all too often in the community.

[phantomcircuit]

Apologies about the slower than usual support tickets- this comes at an unfortunate time for us when a) we are restructuring as a company internally b) meetings with investors all this week and c) the team is in various places for various reasons. We will be hiring new support staff by the end of this month to handle more of the tickets.

I dont mean to be nosy but I'm curious.

A. How big is the company?
B. How are you going to operate profitably if you charge 0 fees and take 0% on trades? Is it all investor driven and are you open to investment opportunities?

Part of me wanting to know is because I'm reluctant to invest time and money into a trading account at a brokerage which will be here 1 day and gone the next. We've seen it happen all too often in the community.

We are the second longest operating bitcoin exchange and have no intention of closing our doors.

[Yankee (BitInstant)]

Apologies about the slower than usual support tickets- this comes at an unfortunate time for us when a) we are restructuring as a company internally b) meetings with investors all this week and c) the team is in various places for various reasons. We will be hiring new support staff by the end of this month to handle more of the tickets.

I dont mean to be nosy but I'm curious.

A. How big is the company?
B. How are you going to operate profitably if you charge 0 fees and take 0% on trades? Is it all investor driven and are you open to investment opportunities?

Part of me wanting to know is because I'm reluctant to invest time and money into a trading account at a brokerage which will be here 1 day and gone the next. We've seen it happen all too often in the community.

We are the second longest operating bitcoin exchange and have no intention of closing our doors.

I second that

[DannyM]

I can't see why a legitimate business would have an account frozen. A multitude of legitimate small wires won't do it that's for certain.

So funny. Look into this assumption.

[Yankee (BitInstant)]

I can't see why a legitimate business would have an account frozen. A multitude of legitimate small wires won't do it that's for certain.

So funny. Look into this assumption.

I thought he was being sarcastic 

[DannyM]

I thought he was being sarcastic 

Then I apologize to bobajob.

[bobajob]

The second longest running Bitcoin exchange? Bitcoin consultants? Been featured on the goddamn BBC? Unable to maintain a bank account despite warning flags of potential problems and having to recently change banks because of similar problems?

But hey, you come across as trustworthy sorts on IRC. IRC? Bwahahaha...

I do however appreciate your response. Good customer communication is essential for any 'fledgling' business. Unfortunately the actual details of your problems seem like they could have been avoided; given you are consultants in this industry, given you have been in this game from close to the start, given that you have had problems with banks before.

Why did you fail to foresee, and act accordingly, to an issue that seems to affect many of your competitors? Your Lawyers, banking consultants, financial advisers etc should have been pay-rolled and fully engaged with Lloyds from day one. And every day since then. You know, considering you've had similar problems before. And you happen to be consultants in this field. And you deal in financial services. And you've been on the goddamn BBC!

I guess I will have to pursue my money through my own bank. One things for sure, if this had been Paypal I guarantee people would be swallowing ball bearings, strapping dynamite to their chests and throwing themselves at Ebay in some ragefull neckbeard jihad. But hey, its Bitcoins, and the company seem really nice on IRC.... 

(ps. I'm extremely sarcastic first thing in the morning and last thing at night. I also expect others to meet standards I myself do not. Go figure...) 




 

[Pteppic]

I dont mean to be nosy but I'm curious.

A. How big is the company?
B. How are you going to operate profitably if you charge 0 fees and take 0% on trades? Is it all investor driven and are you open to investment opportunities?

Part of me wanting to know is because I'm reluctant to invest time and money into a trading account at a brokerage which will be here 1 day and gone the next. We've seen it happen all too often in the community.

Has anyone answered part B yet? I am also interested in where the revenue comes from. If you are offering 0% on trades to gain market share before moving to a fee-based model later on that is fair enough, but it is a bit disconcerting dealing with a company that doesn't appear to have any income!

But I have been very happy with the customer service I have received from Intersango up to now.

[mila]

A. How big is the company?

http://bitcoincharts.com/charts/volumepie/

it seems to me they are 2nd - 3rd in size competing with Tradehill & biggest in UK / GBP
although I don't check that pie daily.

+1 curiosity for the B part. what's the plan to reach profitability?

[Nefario]

Genjix and everyone else in Intersango are publicly known(their real life identities), they have been the most reliable, most consistent, most honest players in the bitcoin exchange industry.

Without even knowing what is happening in the background I can assure you that Genjix and crew at Intersango are working on getting everything back up and running feverishly.

I stake my reputation and my own personal funds (which I have in Intersango as GBP) that they will sort this out. If Genjix and crew cannot be trusted then not a single person in Bitcoinland can.

Nefario, GLBSE (not Intersango).