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Changelly clarifies the scamming accusation made against the platform

Laira Rebecca

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Changelly clarifies the scamming accusation made against the platform
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Changelly, a leading cryptocurrency exchange platform around the globe was recently accused by its users of holding their coins. The discussion on social media platform led to a movement propagating the boycott of the exchange platform.

Changelly was accused of scamming by its traders due to its new KYC policy. KYC was made mandatory for users making huge transactions which looked suspicious to the exchange platform. But due to its mandatory requirement, many users were unable to complete the transaction without sending their information to the platform. The coins were withheld on the platform, it was neither sent back to the users nor was the transactions completed.

This also led to the uproar in the crypto-community claiming that this policy is against decentralization and the foundation principle of cryptocurrency.

During an exclusive interview with AMBCrypto, Changelly has clarified all the question arising with respect to the controversy.

The cryptocurrency exchange platform said that they are initially an anonymous crypto exchange. They respect the principle of anonymity and their customers desire to keep their privacy. They also said:

“99.5% of the overall number of transactions on Changelly is processed anonymously. In certain cases, when it comes to large amounts of crypto exchanged into untraceable currencies, we require our users to pass a KYC procedure. The customer’s consent is requested via corresponding alert before the money is sent.”

They further add:

“If the KYC terms appear unacceptable for some reason, they can refuse making the transaction and sending money to Changelly. Currently, there are only a few transactions that have become the subject of KYC (less than 0.5% of the flow, as of writing). Most of those are processed successfully, without any occasions.”

The team explained the compulsory requirement of KYC while making a huge crypto exchange and their main reason for cryptocurrency boom. They said, ‘Cryptocurrency is a wonderful tool that disrupts traditional financial institutions. It naturally attracts too much attention from banks, large companies, startups, and investors.’

‘For this reason, European legislators shine the spotlight on cryptocurrency and amend their regulations and directives for that. Unfortunately, if we want mass adoption for crypto, KYC procedures become inevitable, since we live in an open society where anyone can track anything’, said the team.

“Changelly team is trying to strike the balance between users’ privacy and following the directives. Still, over 99,5% transactions on Changelly are processed anonymously.”

When asked whether there is a set benchmark on how much can be exchanged into untraceable currencies without the requirement of KYC, they said,”‘KYC checks take place quite rarely, and only for the very first time when a user exchanges money into untraceable currencies. In fact, there is no fixed amount required for KYC. The check depends on a range of factors, such as a user’s transaction history, destination wallet and even time when they initiate a transaction. There is a database of suspicious wallet addresses that may be linked to malicious activities. It is shared among other crypto services and trading platforms that run KYC.”

“For example, if a hacker attack takes place, and we detect a transaction using a suspicious wallet address, we may temporarily suspend that transaction until we have clear proofs of funds being exchanged.”

Changelly team even spoke about the accusation made by a Reddit user who claims that there was no notification regarding the requirement of KYC shown to users whereas the exchange platform claims otherwise. They said:

“We do have a notification that user sees before they send us money. This notification implies a box a user must tick. Without doing that, they are unable to perform a transaction.”

They further added:



“Previously, we had a simple notification on top of the screen. Eventually, it turned out to be not so informative, as some users continuously ignored that. So we decided to deploy an enforced checkbox in order to avoid such kind of issues.”

In addition, the team also provides a reason as to why Changelly has still not returned the coins to users who are not willing to provide their KYC details. They said, ‘Once a user checks the box, they must be ready to provide the required information. If not ready, they must refuse from sending money to Changelly.’

“If the information provided by a user is controversial or not provided at all, we consider the funds are obtained fraudulently and act as the last legal entity in the whole exchange process by halting the funds. This helps legal representatives investigate the issue and find the real money owner.”

The platform, in the end, talks about the controversy going on the social media platform. They said:

“The whole controversy that took place was initiated by people who didn’t provide information to meet our requirements. The details sent comprise controversial data and fake photographs which, unfortunately, are not considered to be a clean funds proof”





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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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Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more

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Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more

Daily Crypto News – May 25

1) Bitcoin Wallet receives part of 5,000 BTC: A recent Whale Alert highlighted a transaction on May 24, where a large sum of Bitcoin [BTC] exchanged hands between two anonymous wallets. According to the alert the transaction took place at 22:13:23 + 1 minutes and 5,000.00001092 BTC was transferred from an unknown wallet, with address 19SiCYaYKZh9A8HUjuh14eg5wtYzKxiFbB, to another unknown wallet with address 14GcjGjxwadzcpmq9EG3KUgTKATjurbnWt.

Read more at https://bit.ly/2VRQwb0

2) Bitwise Report 2.0: Bitcoin [BTC] futures continues growth: On a month-on-month basis, Bitcoin Futures saw a massive bump in April trading at an average of 10,000 contracts daily, peaking on April 4, with over 22,000 contracts traded. To put that number in perspective, in March 2019, the average contracts traded was less than 4,000. Despite the high standards set in April, the average daily contracts traded in May, with 25 days gone has exceeded 14,000 and still looks to grow, given the price performance of Bitcoin.

Read more at https://bit.ly/2W40sTR

3) Craig Wright on private keys: Craig S Wright has, for years, claimed he is the true creator of Bitcoin [BTC] without providing a shred of evidence to support the same. With the crypto-community levelling, Wright could prove his worth by sending BTC from Satoshi Nakamoto’s touted wallet containing around 980,000 BTCs, the BSV man in a twisted cause and effect situation, stated he will “sign” into his wallet only when he proves he is the creator.

Read more at https://bit.ly/2X6fdlw

4) Tether’s [USDT] market cap hits ATH: Tether and Bitfinex are being closely scrutinized now more than ever due to the NYAG’s lawsuit; however, the scrutiny doesn’t seem to have affected Tether as the market cap of USDT has increased by over $100 million in approximately 70 days.

Read more at https://bit.ly/2McaTjE

5) Tether volume shift: Another controversial topic in the cryptocurrency industry was the issue of fake transaction volumes on many of the popular cryptocurrency exchanges. The magnitude of the topic was so large that even Changpeng Zhao, the Chief Executive Officer [CEO] of Binance had raised red flags. This topic and Tether as a whole received another twist when Larry Cermack, the Director of Research at The Block, pointed out a few parameters when it came to the said volume.

Read more at https://bit.ly/2wmk4mJ

6) Bitfinex’s LEO tokens listed on Delta Exchange: Bitfinex’s Leo tokens faced quite a lot of criticism when they were announced, due to the missing $850 million funds from Bitfinex. The private investment round by Bitfinex also faced a lot of heat from the media. However, in a recent development, Leo tokens are being listed on various exchanges for trading.

Read more at https://bit.ly/2HUEnNB



7) Robinhood en-route a projected valuation of $7 billion: Robinhood, the California-based cryptocurrency exchange made headlines recently when a source close to the organization revealed that it was on the verge of closing their latest round of funding at a valuation of a whopping $7 billion – $8 billion. Sources even claimed that the current round of funding could act as a precursor to an even bigger round of funding, which would pit Robinhood with the bigwigs like Coinbase and Binance.

Read more at https://bit.ly/2W64KKj





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