Consumer complaint received 2019-09-02
Company: Circle Internet Financial
State: OR
Product: Money transfer, virtual currency, or money service
Sub-product: Mobile or digital wallet
Issue: Fraud or scam

Complaint:
Hello My name is XXXX XXXX, resident of Oregon state. 

I signed up on https : //www.poloniex.com, owned by Poloniex LLC , further owned by XXXX XXXX back in XXXX. I deposited bitcoin in the approximate ammount of {$2000.00}. Back when I signed up KYC/AML procedures were not required and users were allowed to trade and use their services freely. 

In XXXX they implemented KYC/AML procedures by force, disregarding the previous Terms of Services for users who joined before that date. They tweeted from their official XXXX account stating that old users who wished to have their assets returned would be free to do so without going thru KYC/AML verification procedures. They quickly deleted that tweet and reneged on their promisses by forcing everyone ( no matter what year they joined ) to go thru KYC/AML in order to trade on their website and be allowed to cashout their assets. 

I did not agree to this back when I first signed up and would have not chosen to deposit my money with this company knowing that will be the case in the future. 

In XX/XX/XXXX I needed money so I went and logged in to my dormant Poloniex.com account on which I held those funds, I was a holder and not a regular trader, remembering I had an account there by chance ( I browsed thru my old emails to see on which cryptocurrency exchanges I had signed up on ). I logged on and saw that I had assets worth ~ {$2400.00}, around XXXX BTC in total. 

I tried to cashout my assets and there the problems started. I was informed that in order to use my account to cashout my own money or do any trades on Poloniex.com I had to go thru their KYC/AML verification procedures which I never agreed to and were not required when I started my account with Poloniex LLC. 

Seeing as I had no option i went ahead and submited my legal documents to complete the KYC/AML verification procedure. These included my USA Passport and USA/Oregon state driver 's license along with a selfie of my face. Some days passed after that and I received an email from Poloniex LLC stating that they do not " believe '' me and refused to allow me to  withdraw my holdings, my own money. They proceeded to ask for old transaction information from over 2 years ago, which I never though to write down and could not provide them with. Cryptocurrency transactions details look like encrypted text, numbers and letters in long strings, making it impossible for a normal human being to remember. Poloniex LLC knew that and I presume that is how they steal people 's hard earn money, by asking them to provide impossible things. NEVER in their original ToS did they make it clear that each user must remember individual transaction details and keep a written ledger to be able to have their money released. 

Fast forward to late XX/XX/XXXX, Poloniex LLC stopped replying to any of my emails and support tickets and proceeded to lock my account. I can not even login to see how much funds I have on there or do anything other then to write emails that no one responds to, other then the automated replies stating that Poloniex LLC will contact me shortly thru one of their support agents, which never happens. 

Back when I tried to cashout my funds in XX/XX/XXXX, my assets were worth roughly {$2400.00}. With the bitcoin price going down, they we're worth only {$1600.00} back in mid XXXX when I still was able to login to their website in order to see my assets. So thur their delays and stalling tactics they cost me rougly {$800.00}, which ammounts to almost 35 % of my total holdings! Right now I have no idea if my assets are still there and how much they are currently worth. 

I hope that you will be able to help me recoup my hostage held funds from this shady company. 

Best regards, XXXX XXXX

Company response to consumer: Closed with explanation