Crypto exchange ChangeNow is facing an allegation of whisking away $70,000 via the Changelly API from a user known by the username ni23457. The exchange allegedly overstepped its limitations by holding onto this user’s coins in at least one trade. The ChangeNow exchange is known for promising fast coin swaps free of custody.
The exchange is a third party exchange and has no connection to Changelly. When Changelly heard the news it instantly denied all allegations and stated that the customer was not dealing with them directly. It washed its hands off the matter stating that the customer was dealing with a third-party company using the Changelly API.
This theft was reported in the month of July this year when the user posted a thread on Bitcointalk and accused the ChangeNow crypto exchange of stealing his funds worth $70,000. The user stated on the discussion forum that he used ChangeNow to initiate a trade of 100 BCH for 11 BTC. He said that he used the exchange platform to initiate the transaction and sent the BCH to ChangeNow’s wallet.
According to him, that’s where things started going wrong. The exchange demanded KYC verification from him before completing the transaction. He had refused to comply with the KYC demand and that’s when the exchange refused to return $70,000 worth of BCH, as stated in the Bitcoin Exchange Guide report.
In its defense, the exchange said that their risk management system found the client’s activity to be suspicious. That is when the exchange asked him for his ID in order to clear the KYC. However, the user sent them a fake ID. This prompted an investigation during which the exchange placed the user’s funds on a cold wallet, only to be released on completing the investigation.
The ChangeNow crypto exchange stated that the only step remaining in their investigation was the video verification procedure. When it requested the user to join a video call with his real ID to complete the KYC procedure, he refused to cooperate. The exchange added that ever since the user has been sending completely unfounded defamatory messages revealing their team members’ personal data in various public forums. The exchange also accused the user of harassing them on social media and sending them threats, as stated in the Oracle Times report.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]