Consumer complaint received 2023-08-21
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Fraud or scam — 
Company: AMALGAMATED TOKEN SERVICES, INC. ()

Consumer Financial Protection Bureau Complaint by XXXX XXXX against CoinList Markets LLC ( XXXX XXXX XXXXXXXX ), XXXX, XXXX XXXX XXXX XXXX, XXXX XXXX, NY XXXX XXXX Good afternoon. 
My name is XXXX XXXX. I am a citizen of XXXX. I am only XXXX XXXX XXXX. 
I ask you to help me return my money from CoinList Markets LLC ( XXXX XXXX  XXXX ), XXXX, XXXX XXXX XXXX XXXX, XXXX XXXX, NY XXXX or oblige them to supply me with XXXX tokens. 
I registered on the CoinList Company website ( https : //sales.coinlist.co ) in order to participate in the events for the initial offering of tokens ( XXXX  ) issued by various Companies. For registration, I passed verification and was approved by the Coinlist Company, thus an agreement was signed between us. 
In XXXX, Coinlist announced an event for the sale of XXXX tokens - " XXXX XXXX XXXX ''. I registered for this event. When registering, Coinlist asked to provide the address of the XXXX token XXXX I registered for the event on XX/XX/2023. I am not a big specialist in the field of XXXX. I am still studying the issue of early investment in different Companies in order to receive additional investment income for my money. Coinlist asked me to provide the address of the XXXX token. At the time of registration, I had accounts on two exchanges- XXXX and XXXX. Accordingly, I went to my account on the XXXX exchange and copied the address of the XXXX token - XXXX and provided it to the Company. Nowhere was it written that it is impossible to provide an address from centralized exchanges, but it is necessary to provide an address that is a decentralized XXXX address. 
I received the following email to confirm my address ( screenshot attached ) : XXXX XXXX XXXX XXXX  Powered by XXXX XXXXXXXX XXXX, You recently submitted an address ( XXXX ) for the XXXX XXXX XXXX distribution. 
The address is : XXXX You must confirm your submission by clicking the button below. The link expires in 30 minutes.

CONFIRM If you did not submit this, contact us immediately Nowhere was it written that this should be the address of an external decentralized XXXX wallet. 
I confirmed. I received a confirmation email ( screenshot attached ) : XXXX XXXX XXXX Sale Powered by XXXX XXXXXXXX XXXX, Your XXXX XXXX XXXX distribution address has been set to XXXX If you did not make this change, contact us immediately The confirmation also does not indicate anywhere that this should be a third-party decentralized wallet. It is indicated that this is the address of the XXXX token and that's it. At that time, I did not fully understand why this additional address of the XXXX token was needed, in previous events no additional address was required. 
The day of the event came on XX/XX/2023. Before that, I already took part in events 2 times, but I did not win part of the distribution. But this time I was lucky, as I thought. I won the opportunity to place an order for the initial redemption of tokens. I made an order for XXXXXXXX XXXX. I trusted and trusted the reputation of the Coinlist Company. It's a big amount for me, but I believed it. 
On the same day, I remembered that I did not provide the address of a third-party wallet, but my address of the XXXX token on the XXXX exchange. I thought that since the token unlock period is XXXX months, something might happen to the exchange. I searched for information on the Internet and found a third-party XXXX service and created my own third-party wallet for the XXXX token ( XXXX XXXX in it. I immediately wrote to Coinlist about it on XX/XX/2023 via the notification service https : //support.coinlist.co/support/tickets. 
Ticket : I need help, I don't know what to do # XXXX dated XX/XX/2023. In this application, I asked to change the wrong address that I indicated, XXXX, to a new address in a third-party XXXX service - XXXX : XXXX Also on XX/XX/2023, I sent an email to XXXX to COINLIST. 
Ticket : Wrong XXXX wallet address on registration # XXXX dated XX/XX/2023. 

XXXX According to the company 's regulations, a response must be provided within XXXX days. The end date of the event was XX/XX/2023 ( the date the required amount was finally deposited into your Coinlist account ). That is, starting from XX/XX/XXXX plus XXXX days, it turned out that the answer should be until XXXX XXXX maximum. 
On XX/XX/XXXX, I made another appeal I need help, I dont know what to do No. XXXX of XX/XX/2023 : XXXX But there were no answers. 
On XX/XX/XXXX, I made another appeal " I need help I don't know what to do # XXXX dated XX/XX/2023 '' through the service https : //support.coinlist.co/support/tickets  : XXXX, as well as the appeal : Invalid XXXX wallet address during registration # XXXX dated XX/XX/2023 by e-mail : XXXX No answers came. The end date of the event was approaching. 
On XX/XX/XXXX, I made another appeal " Invalid XXXX  wallet address during registration # XXXX dated XX/XX/2023 '' : XXXX There was no answer. 
I funded my Coinlist Company account by sending XXXX XXXX  from my XXXX wallet on XX/XX/2023. All this time, starting from XX/XX/XXXX, I received letters from the Company with a reminder to pay for my order : XXXX Letter dated XX/XX/2023. 

XXXX Letter dated XX/XX/2023 XXXX On XX/XX/XXXX, a letter with a threat came - the last warning!!!! 

XXXX Letter dated XX/XX/2023. 
And on the same day I received a notification that my applications were closed. I thought the issue had already been resolved and the address had been corrected by the Company. 

XXXX On XX/XX/XXXX, the Company unilaterally withdrew from my account ( which is on the balance in the Coinlist Company in the USA ) in its favor the amount of XXXX XXXX. Those. a debit transaction from my account occurred at the company 's registered office at XXXX, XXXX XXXX XXXX XXXX, XXXX XXXX, NY XXXX : XXXX By this time, I had already sent XXXX requests to Coinlist asking to change the address, here is a list of these requests : XXXX But the Company did not give an answer within XXXX days according to its regulations and unilaterally deducted money from my account in the amount of XXXX XXXX. 
The answer from the Company came only on XX/XX/2023 with a message that the tokens were sent to the wrong address and nothing can be changed : XXXX Hello, Thank you for your patience. 

Unfortunately, it is not possible to update the wallet address provided for the XXXXXXXX XXXX XXXX. In our previous communications, we made it exceedingly clear to submit a non-custodial address. The XXXX tokens from this sale have already been distributed to the provided address and we are unable to reverse the transaction. 

We appreciate your understanding. 

With Regards, CoinList I did not agree with this and on XX/XX/2023 I wrote them a complaint asking them to change the wrong address and not send tokens to the wrong address ( attached ). 
On XX/XX/XXXX, the Company replied : Hello, Your query has been recorded and forwarded to the relevant team for investigation. Once we have an update from them, we will be sure to pass it on to you. We hope to get this matter resolved for you as promptly as possible. Thank you for your understanding. 

Please kindly follow up on this matter through ticket # XXXX. Opening a new ticket may cause confusion and take longer to process. New tickets will be closed automatically by the system. 

With Regards, CoinList A little later on XX/XX/XXXX, another reply came : Hello, We're sorry to hear of your experience and while we understand your frustration, by agreeing to our token sale terms of service you agreed to understanding the risks of partaking in token sales. Unfortunately, according to our Terms of Service, we will not be able to provide a refund. 
I hope you look forward to our future token sales, as we continue to research and try to provide the best token sales in the space. 
With Regards, CoinList I turned to the XXXX crypto exchange with a request to check the availability of arch tokens on their address - XXXX, which I indicated during registration. The exchange told me that they need the XXXX operation code for verification, then they can check. I contacted the Coinlist Company with a request to provide me with a transaction code ( XXXX ) for transferring tokens, but the Company replied that they could not provide the transaction XXXX, because. they don't have it. How is it not, I dont understand if all operations take place in the blockchain and everything is recorded there. But they replied that the tokens were sent through the genesis file, I dont understand how this can be done without writing to the blockchain. 
XXXX XXXX XXXX, The XXXX address we provided, as previously mentioned, corresponds to the XXXX wallet you provided. This means that once you add XXXX 's network to your XXXX wallet, you will see this same address with the tokens already distributed there, as per the instructions here. 

The tokens for each Coinlist account were set in the XXXX XXXX  used to start the network and therefore transfer transactions were not executed. This is why you won't see those transactions on the chain. In order to understand better how these technical details work, I recommend you contact XXXX XXXX team on their XXXX. 

Unfortunately, as mentioned since the wallet collection stage, once confirmed the wallets couldn't be changed anymore. 
With Regards, CoinList Without the XXXX of the operation, the XXXX XXXX  can not verify whether the tokens were sent to the wallet or not. 
In the correspondence, the Company also indicated that the tokens were sent not to the address I provided XXXX, but to a completely different address XXXX. 
XXXX XXXX, Thank you for your patience with this issue. 
My name is XXXX and I am one of the Client Services Managers at CoinList. 

Unfortunately, we are unable to process refunds or distribute the tokens again. The distribution was completed to the XXXX wallet corresponding to the XXXX wallet you provided, as mentioned before. You can confirm this here : XXXX XXXX XXXX. 
Furthermore, we had communicated that once the wallet was confirmed, it would be permanent and couldn't be changed. 
Thank you for understanding. 
With Regards, CoinList I did not give this address. I asked the Company a question, they answered that they did it that way and it was right. 
XXXX XXXX, The XXXX address we provided, as previously mentioned, corresponds to the XXXX wallet you provided. This means that once you add XXXXXXXX XXXX network to your XXXX wallet, you will see this same address with the tokens already distributed there, as per the instructions here. 

The tokens for each Coinlist account were set in the XXXX XXXX  used to start the network and therefore transfer transactions were not executed. This is why you won't see those transactions on the chain. In order to understand better how these technical details work, I recommend you contact XXXX XXXX  team on their XXXX. 
Unfortunately, as mentioned since the wallet collection stage, once confirmed the wallets couldn't be changed anymore. 
With Regards, CoinList Hi, Thank you for your reply. 
To find their XXXX address, you can use this XXXX converter. Simply plug " cosmos '' in the top left with your address underneath, and then " XXXX '' in the top right, and it will produce the correct XXXX address. Afterward, you can search for your address on XXXX 
Also, In the mail attachment, you can see the useful information from XXXX. 
With Regards, CoinList Hello, Thanks for getting back to us. 

We are unable to cancel your purchase request for the XXXX XXXX XXXX 

We made it exceedingly clear to submit a non-custodial address. The XXXX tokens from this sale have already been distributed to the provided address and we are unable to reverse the transaction. 

In regards to tickets being marked as closed, this is system automation to make addressing your questions easier. If we receive tickets with the same or similar issues, the duplicate tickets are closed. 

We recommend contacting the support team of the receiver platform. Thank you for your understanding. 

With Regards, CoinList I asked the Company to explain on what basis they charged me the amount of XXXX XXXX  on XX/XX/2023, if nothing could be changed. After all, if it was impossible to change anything, then they could simply cancel my order and not send tokens. Why did the Company write off the money? According to the Company 's regulations, in case of significant changes in the client 's data, the client is obliged to immediately notify the Company about this. I notified the Company of significant changes on the day of the token sale event on XX/XX/2023! On this day, nothing happened yet and the Company could simply cancel the order. But the Company did nothing and simply deducted money from my account for no reason. 
I have asked the Company to provide me with a written response, and not through email correspondence, to my questions : o CEO CoinList Markets LLC ( XXXX XXXX XXXXXXXX ) From the company 's client XXXX XXXX XXXX XX/XX/2023 You provide answers to my requests in the form of e-mail answers. 
I ask you to give me an answer signed by your general director. 
1. Provide me with the details of the transaction for debiting XXXX XXXX  from my account and the grounds for debiting it. 

XXXX XXXX. I provided the address of the XXXX token - XXXX in the XX/XX/2023. I wrote you an appeal # XXXX on XX/XX/2023 that the address is specified by the exchange and it is not correct? Why didn't you reply within 3-5 days? Why did you deduct money from my account? Why didn't you just cancel my application? Why?

3. I have provided the address to you - XXXX. You state that you sent the tokens to the address provided by me XXXX. Then provide me with an identifier in the blockchain ( XXXX  ) of this transfer to my address - XXXX. I provided the address of the XXXX  token - XXXX. 
4. You claim to have sent my tokens to an address on the XXXX network - XXXX. I gave you this address - XXXX? No. Did I authorize you to send my tokens to this address? No. Please show me the information in which I authorized you to do this. 
5. Provide me with the operation code ( XXXX ) for sending tokens to the address - XXXX on the network XXXX. I need this transaction code ( XXXX ) so that I can identify this transfer in the blockchain and contact the XXXX exchange to verify the information that you sent tokens to this address, because address - XXXX belongs to the XXXX exchange. 
6. You reply that you do not have an operation code. But on the XXXX exchange they claim that all transactions have a XXXX transaction code!!!! 

XXXX Translation : Dear trader, Thank you for contacting XXXX Customer Support. Thank you for the information provided. We have carefully studied all the details regarding your request. In order to check the status of the transaction you are referring to, we need a unique transaction identifier, the so-called XXXX, which is associated with this transaction on the network where it was made. Unfortunately, without the XXXX  of the transaction, we won't be able to identify that particular transaction in our system. Please refer to the respective platform or system where the transaction was made to obtain the XXXX. Once you have the required ID, we will be happy to assist you in checking the status of the transaction and providing additional information upon your request. We expect information from you as soon as possible. 
Thank you for your feedback. Sincerely, XXXX Support | XXXX XXXX XXXX. Please provide this transaction code ( XXXX  ). Please refer to the respective platform or system where the transaction was made to obtain the XXXX. I can't contact XXXX because I have no relationship with them in this situation. I don't have a signed contract with them. And I have an agreement with you, I have a relationship with you. You have deducted money from my account. 

XXXX XXXX. 
But Coinlist only gives answers by mail and refuses to give a written answer signed by the CEO and stamped. 
Answer dated XX/XX/XXXX : XXXX XXXX, Thank you for getting in touch with us. 

We debited XXXX XXXX from your account because It appears that you had submitted a purchase request for this amount. 
Unfortunately, wallet submissions were final, meaning we were unable to make any changes afterward. 
We regret to inform you that we are unable to provide a XXXX for the distribution of the XXXX tokens you purchased on CoinList. The tokens were sent via the XXXX XXXX, which does not generate a XXXX 
The XXXX team is the one that took your XXXX  address and used the XXXX XXXX converter to generate the XXXX address. This is pretty typical for networks on the XXXX XXXX. The conversion tool is a simple encoder. 
Additionally, it is important to note that the agreement you signed pertains to XXXX and yourself, not involving us directly. 
We truly appreciate your understanding in this matter. 

With Regards, CoinList Answer dated XX/XX/2023 : XXXX XXXX, This is XXXX once again, one of the Client Services Managers at CoinList. 
I'd like to inform you that issuing letters signed by our CEO is not a standard procedure within our organization. As a result, we regret to inform you that we are unable to fulfill your request. 

Please consider this our final response. 

With Regards, XXXX And on XX/XX/2023, the Company sent a letter stating that I was allegedly doing some kind of illegal actions and they want to close my account. A wrote APPEAL for the " Letter - CoinList - Notice of Account Closure [ ACTION REQUIRED ] '' # XXXX dated XX/XX/2023 and APPEAL for the " Letter - CoinList - Notice of Account Closure [ ACTION REQUIRED ] '' # XXXX dated XX/XX/2023 of the year. But the Company rejected without providing any explanation. 
Thus, there was a situation that the Coinlist Company, despite my warnings about significant changes related to the Delivery address of the tokens, having violated its own time limits for responses, unilaterally deducted the amount of XXXX XXXX  from my account, which is located in the Company at the place of its registration in the USA and did not deliver tokens to me, although she claims that she did, but she can not provide evidence of the delivery of tokens, namely the XXXX  of the delivery operation.

I consider this behavior incorrect, incorrect and fraudulent. I think that in fact there could be no sending of tokens, the Company just wants to take the tokens for itself.

Also, the Coinlist company illegally, for a far-fetched reason, wants to close my account, so I could no longer write my appeals to them.

I ask you to intervene in this situation. Because The supply of tokens has not yet taken place, then oblige the Coinlist Company to return XXXXXXXX XXXX to my account or complete the Supply of tokens to my correct address - XXXX, which I provided on XX/XX/2023. 
Before you, I have already applied for the protection of my rights to the STATE OF WASHINGTON DEPARTMENT OF FINANCIAL INSTITUTIONS DIVISION OF CONSUMER SERVICES XXXX XXXX XXXX, XXXX, Washington XXXX. They sent me to the STATE NEW YORK DEPARTMENT OF FINANCIAL INSTITUTIONS DIVISION OF CONSUMER SERVICES. And in this organization I was given your contact. Now I turn to you. 
Thanks in advance for your help. 
XXXX XXXX.