Crypto funds seized by an swap/exchange

[Wrkmail]

Hi

Hoping someone can help with this one.

SWIM has had some funds seized whilst attempting a crypto swap using a popular, trusted and reliable exchange.

The reason provided by the exchange is that the funds are linked to illegal activity.

My client was unaware of this and sought reassurances prior to accepting the crypto. They did KYC the customer so have ID etc.

The exchange are now asking for several proofs such as an email communication video showing the back and forth, the reason for the exchange etc.

Has anyone been in this situation before where the funds have been seized as a result of illegal activity? Will the exchange be able to release them? What process will the exchange go through before releasing them. Ironically my client had a similar issue once with a small amount on Binance or some other large exchange and was able to get that released much easier than with this exchange.

All help is greatly appreciated.

 

[greenline]

is this a cex or a fixedfloat like website?

 

[Wrkmail]

Yes FixedFloat

 

[TheCryptoAnt]

FixedFloat uses Binance liquidity

 

[Wrkmail]

Is this why they flagged it?‌ Was it flagged by Binance therefore by them?

 

[TheCryptoAnt]

Could be both but yeah this is the most likely scenario.‍ Binance Cloud provides everything (given you pay for it)

 

[greenline]

fixedfloat is known for stealing customers money: https://bitcointalk.org/index.php?topic=5482815.0

 

[Jorozey]

Such cryptos are only traded in crypto p2p telegram channels, now every "DEX" confiscates funds‌ from people because of their past or unclear sources.

Tell them that if your funds‍ are not released, you will report them on 100k+ user pages on social media +⁠ Telegram/WhatsApp groups etc.
There are no real DEXs anymore, even the DEX - hyperliquid, confiscated⁤ BTC from my client.

 

[cherry]

Why people still use these exchanges is beyond me. How many times do people need‌ to be burned before you realize it's dangerous to use them? The only safe avenue‍ is peer-to-peer DEXs like Bisq or RetoSwap. Devs need to start building those out now,⁠ to accomodagte the wide range of cryptos.

 

[JackAlabama]

after all they can confiscate whatever they want and if they think they get away‌ with it might be inclined to do so.

 

[Wellington]

Point of note, it must be related to some seriously shady s**t, because usually they‌ just flag, slow down the transaction, get authorization from LE and then transact it, LE‍ then uses tracing to map out all the associated addresses/transactions to compile for the case⁠ they have cooking (experience: we had to do aml/kyc et al)

 

[Wellington]

Really?

 

[Bruce flea]

I dont think so

 

[Jorozey]

When I speak, my balls‌ are on the table.

But you can still not believe me and try to deposit coins of shady⁣ origin and see for yourself.

Good luck with your Hyperliquid and the rest fake DEXs⁢ 😉

 

[Bruce flea]

Its says processed , what you bitching about
Unless you laundering for the DPRK Hacks‌ there is not much to be worried about.

 

[Jorozey]

A so-called “decentralized” exchange blocking funds and blaming sanctions (seriously?) Not satire. Just reality. If‌ you don't see the problem, you're a fking fool.

Hyperliquid, it’s something like: a platform‍ where decentralization works as long as it’s convenient.

Don't bother me with your nonsense anymore.⁠ You are the first one in my ignore list thu&¤#