Changelly withhold hundreds of Monero due to “high risk” KYC concerns
The Prague-based cryptocurrency exchange, Changelly, has been the trading platform for Monero (XMR) for months. In fact, for individuals the best option for instant crypto-to-crypto transactions has been Changelly. However, over the past few months, a number of users took to Reddit claiming that Changelly withheld hundreds of XMR because of “high risk” KYC concerns.
According to TheNextWeb report, a Changelly spokesperson confirmed that the exchange withheld suspicious transactions. The funds were held until further information were provided by the users.
“To all Monero community, our risk management system doesn’t mark all transactions out of the blue,” spokesperson explained. “[…] Monero is the crypto that hides a sender and recipient thus making transactions untraceable. This [is] a reason why big amounts of other currency got to be checked [sic] before [it’s] converted to XMR.”
The cryptocurrency exchange soon clarified it saying that the Changelly does not hold prejudice towards XMR traders. Further added that the step was strictly business and it was nothing personal.
“We have no mistrust of and prejudice towards users trading XMR,” the spokesperson clarified. “The matter relates to a Know-Your-Customer procedure that we had to implement due to the increased number of money laundering cases via our service.” The spokesperson confirmed that the funds were immediately released after the doubts were cleared. According to the spokesperson, affected users would be white-listed so that in future such delays doesn’t take place.
However, the spokesperson said, “Once again, our risk management system may put on hold some suspicious transactions and the security department is working hard in order to process such operations in minimum time.” The spokesperson further added, “When a customer refuses to provide the required data, we cannot simply return coins as we wouldn’t like to operate and transfer coins that might be potentially stolen or raised by fraud.”
In other news, reportedly, the MEGA Chrome Extension has been compromised to steal users’ XMR. In fact, a warning was posted on official Twitter account of Monero, advising the holders to steer clear of MEGA.
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