Consumer complaint received 2024-12-06 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Money was not available when promised — 
Company: Paypal Holdings, Inc
State: NC

Complaint narrative:
I purchased approximately {$35.00} ( plus applicable fees ) of XXXX on the Venmo platform based on Venmos advertised capability to transfer cryptocurrency to external wallets. Prior to making this purchase, I reviewed Venmos information regarding crypto functionality on their official website as linked below : https : //help.venmo.comXXXX  https : //help.venmo.comXXXX  After confirming that this feature was supported and verifying my identity in accordance with Know Your Customer ( KYC ) requirements ( providing my full legal name, address, Social Security number, and other relevant information ), I successfully purchased XXXX as confirmed in the screenshots attached to this complaint. Including network fees, the total amount charged to my debit card was increased to {$36.00}. 

Following this purchase, I attempted multiple times after to transfer the purchased XXXX to a verified external wallet that I own and control. Each attempt was declined by the Venmo app with a generic error message stating the transfer could not be completed. I reached out to Venmos customer support by phone and was transferred to their cryptocurrency department. Communication was difficult, with several dropped calls in-between my XXXX  and last attempt to contact support. Eventually, an agent named XXXX stated that my transaction was flagged by an automated fraud detection system and recommended that I try again after waiting several hours after my last attempt. Despite waiting multiple days and attempting numerous transfers in accordance with this suggestion, the transaction remained blocked. 

Subsequent email correspondence from Venmo representatives reiterated that the declines were due to automated security flags that customer-facing teams could neither see details about nor override despite multiple confirmations of my personal information, debit card and bank account details, and purchase date as well as my numerous attempts to transfer XXXX with several hours in-between. I requested escalation to Venmos engineering team or a higher-level department capable of resolving these false fraud flags, but the support representatives could not confirm any escalation. Instead, I was suggested to use an alternative payment company, such as XXXX, or to continue attempting to transfer my funds despite said funds being permanently locked in Venmos system with no solution given. 

At no point was I provided with a clear reason for the decline or a timeline for resolution. I was given contradictory statements : on the phone, I was told the issue might be escalated to an engineering team which could resolve the issue, whereas via email I was told no overrides were possible. This situation leaves me unable to access my legally purchased XXXX and transfer it off the platform, a feature that Venmo expressly advertises. 

I believe this constitutes a breach of contract and deceptive business practices. The service advertised the ability to transfer cryptocurrency to external wallets, yet I am now unable to do so and can not recover my funds. Venmos refusal to honor its advertised functionality, coupled with the indefinite hold on my purchased cryptocurrency, suggests that my funds are neither safe nor in my control. I respectfully request that the CFPB review this situation and take any appropriate action to ensure that consumers rights and expectations are honored.

Company response to consumer: Closed with explanation