Kraken violates personal security by rejecting watermarked ID documents

I am in the process of verifying for Tier 3 for the exchange, however they rejected my ID document because I applied a "only for" watermark. Applying such a watermark is considered a standard procedure to avoid ID fraud, in case a breach happens or ID documents are otherwise put into the wrong hands.

The initial rejection took very long after uploading my documents. After that, I tried to convince them by replying to the email in the support ticket, but I'm almost waiting for a week now and still no reply.

We do not have to put up with this sort of practice. I have removed my funds and looking for another exchange were they do respect the security of personal documents. Anyone a suggestion?

submitted by /u/ferdango
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PSA: Xapo will freeze your bitcoin and demand documents AFTER you have deposited

Been a longtime user of Xapo, because of their nice wallet mobile app and the debit card that deducts realtime from the wallet.

Very disappointed though that when I tried to withdraw some bitcoin this morning I was prompted through a 6-step KYC process where I was forced to upload my passport and address proof (at 7 in the morning) before I could perform the action.

I was very annoyed that they would not even allow me to access my bitcoin deposited with Xapo until I uploaded documents and went through this multi-step KYC process. Why let me deposit in the first place if you're only going to ask for documentation and refuse to allow withdrawal later? It's like holding the funds hostage.

Since I already had given some documents back in 2015 (the same exact ones: passport/address proof) for the purpose of the debit card, I decided just to go through the process, hoping i would be able to immediately access the coins for something I needed to do in the morning.

But of course, even upon submission, Xapo says I have to wait up to 5 days (until they are finished VERIFYING my documents!) before I can withdraw any funds:

This is really outrageous and I would urge bitcoiners to avoid Xapo. Freezing funds and demanding KYC/AML before they can be withdrawn makes no sense, especially since I ALREADY GAVE THESE DOCUMENTS BEFOER! If anything, they should be forcing that KYC process before deposit, not waiting until after funds have been already given.

Xapo markets itself as a "wallet". A "wallet" is something containing funds that you have access to on demand. You can't rely on Xapo for this function if they are going to randomly prohibit access to your bitcoin and force you to provide documentation to access funds, even after you have been a customer for years (and have already provided documents prior!).

EDIT: A few hours later (who knows how long it would have taken w/o this thread) they have verified the documents and linked to this:

Users that do not want to comply with these requirements have the option to close the account and have the funds sent elsewhere.

This option was never provided to me and I was not in any way able to initiate such a process.

I've withdrawn my coin from there and I don't plan to use them again.

submitted by /u/theswapman
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Follow up on BitGold – they still have my 10,000USD and have stopped responding since I provided all the requested documents 13 days ago.

This is a follow up to the thread linked below:-


Upon trying to withdraw my assets in Bitgold my transfer was refused and account blocked, when I rang them up to ask what was happening they refused to talk to me.


I posted the thread here explaining the situation and sent the link to them, a few days later they responded asking for documents. Thanks to this publicity now they were giving me the opportunity to do this where as on the phone to support they were not interested in the least.


I am a business owner, I have ID, the name of the account I was attempting to withdraw to is in my name, I have business documents, I have tax documents. I sent what they requested and more in under 2 hours of receiving the request.


I did not complain about my treatment anymore because I want it resolved and did not update the original thread so they could see I had no intention to further damage their reputation if they resolved the issue:-


"Hi (xxx),

Thank you for your email.

Please see all the requested documents attached, they are as high quality as possible and I have also attached additional documents in the form of my National ID. I am not employed but a business owner and so have provided a copy of certificates of incorporation as a substitute.

I have also provided multiple months of my bank statement and if you require it I can provide a print screen of the online account also.

Best Regards, (xxx)"


"Hello (xxx),

Thank you for providing these documents. They have been sent to our Compliance team for review. I will let you know if any further clarification is need.

We appreciate your patience while we complete the verification process!

Kind regards, (xxx)"


This was on June 3rd, 13 days ago.


To clarify, I deposited money with this company, can prove its mine, where its come from, can prove its going to my account and gave them the documents for this and they have still not given me my money back.


Not only that but I sent a polite email asking for an update a few days later and it was IGNORED. I sent another email 2 days ago and that too has been ignored.


Either this company is now confirmed to be in the business of scamming its customers where it pleases or their overall level of service is abysmal. Either way do NOT touch this company with a barge-pole.


I am going to give this another week or two before I get legal advice and begin contacting online news outlets because as I told them originally there is not a chance in hell I will let this go.

submitted by /u/damn1989
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