Consumer complaint received 2025-06-12 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Other transaction problem — 
Company: Winklevoss Exchange LLC
State: FL

Complaint narrative:
I am filing this formal complaint against XXXX  regarding the unrecoverable loss of {$200000.00} in cryptocurrency funds that are currently in XXXX  's custody. This issue highlights critical deficiencies in consumer protection within the cryptocurrency exchange XXXX  and XXXX  's failure to provide adequate recourse for preventable financial harm, demanding the CFPB 's immediate investigation. 

Background of the Incident : On XXXX, I initiated a transfer of USD Coin ( XXXX ) from my XXXX account to my XXXX  account. The receiving wallet address on XXXX  was correct. However, due to the design and default settings of the XXXX platform at that time, the funds were inadvertently sent over the XXXX network instead of the intended XXXX XXXX. Consequently, my {$200000.00} has become completely inaccessible to me, despite being confirmed to be in XXXX  's custody. 

XXXX  's Custody and Failure to Return Funds : For approximately three years, I have tirelessly sought resolution for this issue. I have contacted XXXX  multiple times. While they have repeatedly stated they are " on it '' regarding my case, no concrete progress or resolution has been achieved. I also had communication with their legal counsel on XX/XX/year>, who advised me not to involve the SEC. Furthermore, XXXX  has ceased direct communication with me regarding this issue ; any tickets I submit are promptly closed without a response, as evidenced by email confirmations of receipt followed by survey requests for closed tickets.Despite these efforts and their ongoing awareness, XXXX  has neither returned my {$200000.00} nor provided a viable solution or explanation for their recovery. 

Crucially, XXXX 's own support staff confirmed to me that " The funds have been transferred out of XXXX and are on the wallet that is in the custody of XXXX  '' and that " only XXXX  might recover the funds at this point if they have the capability to do so. '' ( I have photos to show this to be true ). This explicit acknowledgment from the originating exchange underscores that XXXX  has the funds in its possession and, therefore, the responsibility to either return them or facilitate their recovery. 

Why This Constitutes Deceptive/Unfair Practice : XXXX  's failure to return or facilitate the recovery of funds that were sent to a correct address on their platform, even if on an unintended network, constitutes an unfair business practice. As a custodian of user assets, XXXX  has a responsibility to protect these assets and provide mechanisms for recovery in scenarios where funds are held but remain inaccessible due to technical mismatches that are often not clearly explained to consumers.This does not appear to be an isolated incident, as numerous other customers have reported similar issues on platforms like XXXX, indicating a systemic problem with unrecoverable funds due to network discrepancies. It is important to note that other reputable cryptocurrency exchanges have successfully resolved similar cases for their customers, demonstrating that a solution is feasible and that these companies can do better. The repeated assurances without resolution and the attorney 's advice not to involve other regulators further highlight a lack of a clear, actionable pathway for recovery of substantial funds in their custody, which is a direct failure of consumer protection. 

XXXX  's Upcoming IPO : XXXX  's impending Initial Public Offering ( IPO ) makes the resolution of this issue particularly critical. As XXXX  expands its user base, the risk of similar, significant financial losses due to unrecoverable transactions will only escalate. It is unacceptable for XXXX  to proceed with its IPO without addressing known vulnerabilities that lead to consumer financial harm and implementing robust measures to protect future users. Allowing a company to raise capital through an IPO while failing to address fundamental consumer asset protection issues is a serious concern for financial regulators. 

Requested Action from CFPB : I urge the CFPB to : Investigate XXXX  's policies and capabilities regarding the recovery of funds sent to correct addresses but on unintended networks. 

XXXX XXXX  to return my {$200000.00}. The funds are in XXXX  's custody, and they bear the responsibility for their recovery and return to me. 

XXXX XXXX  to establish clear, accessible, and effective processes for the recovery of misdirected funds that come into their custody, ensuring that consumers are not left with permanent financial losses due to complex technicalities. 


Sincerely, XXXX XXXX The hash and transaction info. can be found at XXXX XXXX XXXX

Company response to consumer: Closed with explanation