Consumer complaint received 2023-10-23
Company: HoldCo LLC
State: VA
Product: Money transfer, virtual currency, or money service
Sub-product: Virtual currency
Issue: Fraud or scam

Complaint:
I am filing a notice of fraud that was committed against me through Bitcoin Depot. 

An individual purporting to be XXXX XXXX from Corporate Human Resources of XXXX XXXX XXXX reached out to me on XX/XX/2023 and asked if I would be interested in a remote research assistant position with a new organized US subsidiary of XXXX XXXX, to be located in XXXX XXXX. I was then told to contact XXXX XXXX of XXXX XXXX via XXXX. I verified that XXXX was listed on XXXX for XXXX XXXX and then contacted XXXX via XXXX. The individual purporting to be XXXX interviewed me and after completing the interview process, that individual offered me the remote research assistant position with XXXX XXXX. 

The individual purporting to be XXXX solicited my personal identifying information ( PII ) subject to US privacy laws my social security number, address and government issued identification ( passport ) in the guise of requesting normal employee onboarding documentation. 

XXXX then sent me a check from XXXX XXXX ( see the attachment to this letter ) in the amount of {$4800.00} and requested ( via a Telegram chat, which the individual purporting to be XXXX has since deleted ) that I send back {$4500.00} to XXXX XXXX in Bitcoin ( BTC ) through Bitcoin Depot to a wallet address specified by XXXX. I complied with XXXX instructions and deposited the XXXX XXXX check into my bank account and sent the {$4500.00} in BTC through Bitcoin Depot to the specified wallet address. Attached is a copy of the Bitcoin Depot receipt. 

Afterwards, XXXX requested that I make additional payments. At this point, I became suspicious and contacted my bank. My bank froze my account on the basis that the account had been subject to fraud, and my account is under review for possible termination. The check ultimately was not valid, and I was left paying the full amount. 

My bank instructed me to contact Bitcoin Depot, which I did at XXXXXXXX XXXX XXXXXXXX on XX/XX/2023, immediately after speaking with my bank. I contacted the Bitcoin Depot customer service line printed on the receipt and reported the behavior as fraud. The Bitcoin Depot customer service representative placed my account on hold, but refused to provide a refund, claiming that Bitcoin Depot is not responsible for fraud occurring through Bitcoin Depot. The Bitcoin Depot customer service representative stated that he would be able to refund 50 % of the transaction fee ( with Bitcoin Depot keeping the other half, and not providing any help with respect to the rest of my stolen funds ). Despite being pressed, the customer service representative did not offer any other alternatives. I continued to escalate the issue further, citing regulations, but have not been offered any alternatives. 

It now appears that this entire transaction was fraudulent. The original check that the individual purporting to be XXXX sent to me was not able to be processed, and as a result I have lost the money. More importantly, I am at risk of identity fraud through the PII that the individual purporting to be XXXX solicited from me, which can have serious repercussions for my future. 

A blockchain savvy friend of mine looked at the metadata and other public information for the wallet to which the BTC was sent to. The metadata indicates the wallet is registered under the domain name XXXX with the ultimate registration under the name of XXXX XXXX XXXX It is not clear whether this is an alias for an individual or a group of individuals - there is an actual individual, XXXX XXXX, who is separate ; we believe that his identity was also previously compromised. This is inconsistent with the name under which the individual known as XXXX XXXX interacted with me and from which he requested the BTC be sent, and calls into question whether Bitcoin Depot was actually doing XXXX on its user and the efficacy of that XXXX 

Because blockchain data is public, my friend was able to see that the BTC that I sent was moved to a separate wallet, and then a portion of those BTC were transferred onto XXXX. At the bare minimum, Bitcoin Depot should be looking at the movement of BTC into and out of the wallet, particularly in that it is going to XXXX, an exchange that is being sued by the CFTC and SEC. 

Furthermore, we have evidence to believe that XXXX XXXX has repeatedly committed similarly fraudulent behavior. The same XXXX XXXX has been brought twice to the XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX, the global forum for intellectual property, services, and cooperation. ( XXXX XXXX. XXXX and XXXX ). In both cases, the individual XXXX XXXX was found guilty of representing a medical pharmaceutical company under bad faith, impersonating a similar domain name to a legitimate company for fraudulent purposes. The previous company, much like the messages sent by the individual, are centered around medical manufacturing ; thus, we have evidence to believe that the same XXXX XXXX was behind the previous, and current, fraudulent behavior. Bitcoin Depots lack of oversight again speaks to regulations not followed and by extension, supporting fraudulent behavior. 

I have taken and are in the process of continuing to take normal steps including reaching out to XXXX XXXX XXXX and to Bitcoin Depot, filing two police reports, filing a report with XXXX, filing a report with the U.S. Federal Trade Commission, alerting credit reporting agencies and so on. I are also talking to congressional representatives, including Senator XXXX XXXX and local congressional representatives. In addition, because I was in California at the time all of these activities occurred, I am also reporting these incidents to California state regulatory agencies. 

Bitcoin Depot facilitates fraud and scams that deprive innocent Americans of their hard earned money. The individual who reached out to me used Bitcoin Depot precisely for this reason. I have highlighted this to Bitcoin Depot, and how in offering me only a portion of the fees I paid to Bitcoin Depot back ( but none of the rest of the funds that were fraudulently obtained from me, Bitcoin Depot is profiting from the activity. 

Bitcoin Depot has XXXX  obligations with respect to parties using Bitcoin Depots services. It is hard to see how Bitcoin Depot complied with these XXXX obligations in failing to properly screen the wallet of the individual purporting to be XXXX. 

I would appreciate any help you can provide to me in trying to fix the fraud on me. And if you are unable to help me, I would appreciate your investigating Bitcoin Depot and their facilitation of fraud and scams against me and others.

Company response to consumer: Closed with explanation