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: http://i.imgur.com/FW6KQPD.png

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 Freezing funds and demanding KYC/AML before they can be withdrawn makes no sense, especially since I ALREADY GAVE THESE DOCUMENTS BEFOER!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: https://support.xapo.com/why-does-xapo-ask-for-my-personal-information

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I've withdrawn my coin from there and I don't plan to use them again.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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Brazilian courts freeze 12 million dollars in Facebook’s Brazilian bank accounts.

Since WhatsApp implemented p2p cryptography, the Brazilian government has demanded that Facebook decrypts its users’ messages, especially those of users that are under investigation.

Unable to enforce their demands, Brazilian courts already blocked WhatsApp 4 times in Brazil. Some judges understand that blocking WhatsApp affects the lives of a lot of Brazilians who are not under investigation.

Because Facebook was unable to decrypt the messages and comply with the Brazilian courts it was fined several times several million reals which accumulated to a total of $ 38 million reals (equivalent to about 12 million US dollars.)

Today the courts decided to seize that amount from Facebook and continues to demand that Facebook either decrypts its users’ messages or provides the Brazilian government with a tool that allows them to spy on its users.

It’s hard to say what will happen next. WhatsApp is used by 99% of Brazilians, but if Facebook removes its cryptography, Brazilians will migrate to Telegram. That’s my prediction based on what happened when the Brazilian government blocked WhatsApp. Telegram’s servers weren’t prepared for the flood of new signups.

Being a Brazilian myself I am very curious to see how this plays out … Personally I hope that Facebook closes its Brazilian subsidiary and continues to provide a free internet experience outside of the reach of the meddling Brazilian courts. No doubt, Brazilians would continue paying Facebook for its services with international credit cards, or who knows, maybe even with bitcoins.

Thank you Facebook for ignoring the courts and respecting your users’ privacy!

submitted by /u/pinhopro
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