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Changelly accused of scamming traders because of their KYC policy – Traders are calling for a boycott

Laira Rebecca



Changelly accused of scamming traders because of their KYC policy - Traders are calling for a boycott
Source: Flickr | Martin Abegglen

Changelly, one of the leading cryptocurrency exchange platforms in the world is being attacked by several users over the allegations that the exchange platform has been stealing and scamming millions of dollars from its users.

The whole controversy began with Changelly’s new KYC procedure. The majority of its users claim they were not aware or notified regarding the new policy. Huge transactions made by users without KYC are not completed as the platform considers the transactions suspicious.

Changelly is currently withholding these transactions on their platform and users are mainly concerned as the transaction is neither completed nor sent back to their accounts even after submitting all the KYC documents.

The exchange platform hasn’t reverted back to the users regarding the matter and some of them have been waiting for days at a stretch for a reply from Changelly. They have been receiving automatic mail responses. This is becoming a growing concern amongst all the users and they have started to believe that Changelly is looting and scamming people of their money.

The problem has been faced by most of the Monero [XRM] users and people are suggesting that Changelly should delist the coin instead of constantly blocking their transactions. In addition, there are allegations that the platform does not notify the users about the need of a KYC before the transaction is done even though they claim that a notification is shown to the users.

Most of the crypto-enthusiast are backing the boycott and say that the whole system is against de-centralization and its anti-crypto.

Changelly gave a statement about the issue on Reddit:

“We know that all this KYC stuff contradicts to the initial idea of anonymity in the crypto world. Frankly, we are not happy with this outcome, as well. Anyway, since we are located in the EU, we are forced to implement this procedure. We really understand your frustration and do believe that these are your entire life savings. Once you prove that, we will exchange your coins immediately, with no hesitation. As of now, we didn’t even receive any info from you. Moreover, we don’t even know your name. So how do we know if your life savings are not obtained from a scammy ICO or something?”

Childishforlife, a Reddit user says:

“Insane how they require KYC to withdraw funds, but not to deposit. If they are illegal funds, why even accept them into your exchange? Such criminals”

Moneroexchange13, a Redditor says:


Aro2220 says:

“This is the main issue that the cryptoverse needs to focus on and solve. Decentralized exchanges sound like an interesting idea. But since your security needs to be in your own hands if you want to keep liberty then you should not be sending Changelly or any exchange your entire life savings all at once.”

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Laira is a full-time writer at AMBCrypto. She is a Computer Science graduate and she has about 1-year experience in writing. Her enthusiasm and keen interest in developing her knowledge about blockchain and cryptocurrency led her to be a part of AMBCrypto. She currently does not hold any value in cryptocurrency or its projects.

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FLiK case: Utility tokens take another hit in case allegedly involving Rapper TI, claims prominent lawyer





Source: Unsplash

Stephen Palley, a prominent lawyer at Anderson Kill, spoke out about the FLiK token case via his official Twitter handle. Notably, unlike most tokens in the space, FLiK made headlines because of its celebrity backing.

Towards the end of last year, it was reported that the US Rapper Clifford Joseph Harris Jr., who goes by the stage name T.I. and T.I.P., was sued for $5 million over the alleged failure of the token promoted by him and his partner, Ray Felton. The rapper was being sued by a group of 25 individuals who claimed that that they invested around $1.3 million in the tokens.

Additionally, there were allegations that the rapper used the raised money to increase the token’s value, following which the duo sold their holdings after the coin crashed. Other well-renowned celebrities such as Kevin Hart and Mark Cuban were also reportedly associated with this project.

On the recent developments surrounding the case, Stephen Palley stated,

“Utility tokens” take another hit in case allegedly involving rapper TI. Court says FLiK ICO tokens = securities under Howey Test, for motion to dismiss purposes. That they offered some functionality ≠ relevant given buyers’ expect of profits solely from efforts of others. 1/4″

Source: Twitter

Source: Twitter

Source: Twitter
The lawyer further stated that,”use of funds” was already determined by the defendants, “per the FLiK token whitepaper.” He went on to state that there was a time problem, adding that Federal Law rules that “unregistered sale” of security tokens were supposed to be reported within 12 months after the violation.

The lawyer concluded by tweeting,

“ps — form was never going to be exalted over substance, so none of this is a huge surprise. Also, this is a ruling on Rule 12(b)(6) motion to dismiss so the Court takes the allegations as true for purposes of ruling. The merits still have to be litigated.”

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