CryptoXChange Withdrawal Refused

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CryptoXChange Logo/Homepage

CryptoXChange was one of the early cryptocurrency exchange platforms, supposedly based in Australia. One of their customers reported a failure to withdraw his funds. However, it was later revealed that the customer was Alexander Vinnik, who is the individual later suspected to be laundering funds stolen from Mt. Gox.

This exchange or platform is based in Australia, or the incident targeted people primarily in Australia.

About CryptoXChange

"Crypto X Change [was] an online currency marketplace where you can buy, sell, and store Bitcoins using standard national currencies."

"This is a scam report against CryptoXchange, who has stolen $100,000 USD+ from me and refuses to return it. He told me he had sent the money to me months ago, but that was a lie. To this day I have not received it. Worse yet, he refuses to refund me the BTC I paid to him and refuses to reply on his chats. I am treating this like a legal case and though it is not my responsibility I have taken on the burden of proof in this case against Crypto. I have detailed, highlighted and explained logs ranging from January this year to June of this year in which you will read about how he's scammed and run off with my money. I am asking for a commercial settlement with Crypto, but until then I will continue to make sure everyone knows of the scam he is capable of. His partner in crim currently is Mahin. I hope you all read my story and empathize with it."

"1: I was told on January 12, 2012 that I would get the money the next day"

"2: I was told to message him once I received the transfer. I was then told Ken wanted to say "Hi""

"3: I was even offered a business opp[o]rtunity"

"4: On the 13th I was told had received partial payment. $1746.86 and 3096.03"

"5: Shortly after the excuses started "he was sick" "volume had increased""

"6: I was then told that payments would be sent daily to me I had received nothing and was given yet another excuse "MLK day""

"7: This time he tried to cipher more money from me, asking if I was ready to do more trades before he had even paid for the last one! He then inquired about my job and told me that Mahin wanted to talk some more."

"8: He told me Mahin loved my site and wanted to discuss it with me. I admit, there are a few red flags I should have seen. For one: He told me he dealt with my transactions manually, yet he kept saying that his "banking guys" would deal with this and that. Secondly: He kept asking for me to "trust him" that he had "reputation to keep". I should have seen the red flags..."

"9: He tell me that "unlike other exchangers he treats his clients right" and that "there was no risk with them" He then asks for more BTC to which I stupidly obliged. I sent him 2k, he tells me he is processing payments with his infamous "Banking guys""

"10: More excuses he tells me he has sent the payment, but I have not received. I ask for proof to which he says he will "consult" with the "banking guys". He then enquires once more about my website and asks to link it."

"11: Nothing significant here, just the same old red flags. His interest in my website and excuses and empty promises. Include for burden of proof."

"12: I was told $18.3k had been sent was introduced to a new excuse "his banker was away so there was a build-up" I told him no wire came through and asked what had happened."

"13: More excuses. I was told that I was their "#1 priority" He told me he had chatted with his "boss" on my behalf. I asked him if there was proof of payment such as a receipt. He side steps the question. I think that he may possibly have wired to the wrong ban so I ask where it was sent. He gives me my bank info and it's 100% correct. So there is really no excuse."

"14: Five days, no money and no him."

"15: I am informed that his company had an issue with fraud, someone used stolen New Zealend bank accounts to buy BTCs and Crypto Coupons from him. I suppose this is where trouble started. He lost a lot of money and BTC from that I suppose. So no he was more adament against releasing my funds. He told me he had already sent them though. Lies. He also wanted to know where I got my coins. Red Flag."

"16: He wanted to know where I got my coins. He wanted me to sell him coins for cheap... An exchanger wants this? Really. RED FLAG. How stupid I was to ignore it."

"17: They had been stalling for weeks, I kept receiving more excuses. That it had been sent but they didn't know what was going on."

"18: In the meanwhile they were off having weddings, while I awaited my payment. A new excuse was also presented. They were waiting on Mt. Gox to "lift their limits"."

"19+20: No news on my wires more than a month later. Just more excuses, this time he presented me with a 10k Mt.Gox code. Then he stops replying, ten days later on the 29th he is finally back. I am once again told my wires have ben sent. The "banking guys have put a trace on them."

"21: He tells me about how Mt. Gox is being anti-competitive he then tells me that the wires will be sent and that they would never [hurt him]."

"22 + 23: More excuses."

"24: Included for burden of proof."

"25+26: Offers to help me with my friend's Mt. Gox account. Empty promises."

"27: Burden of proof. More excuses."

"28: Several months since I sent the coins and I have still received nothing on the initial $100,000 transaction. The second one I did for 2 $25,000 is the one he is saying was with stolen BTC."

"29: This is where things get interesting looking back. He says the last batch of coins I sold him, that he hasn't even paid for yet are stolen. He then tells me to chase down the Mf**** because he is unable to sell the coins on Mt. Gox. My question is, at this point, "Why not return the coins?". If he is unable to sell them why didn't he return them to me so I could attempt to get a proper refund. Regardless he owes me money from the legitimate $100,000 worth of BTC I sold."

"30: READ THE TOP: "Mahin and I know you're legitimate" It seems as though everything he warned that Mt. Gox would do to me, he did to me. Kept my coins and my money."

"31: You can see here he's had no issues selling the coins he hasn't paid me for."

"32: He linked me to [a thread about a Mt. Gox customer thinking theri account was hacked]."

"33+34: Included for burden of proof."

"35: It's now he starts asking for natarised docs, this was not required before and I never agreed to this new term. Additionally, the transaction took place prior to this "update" of TOC so I was not bound to it."

"36: He then tells me that my ID and Bank Account don't match. More lies."

"37: At this point, I recognize I've been scammed 3 months with no money and no coins. The gut feeling is there, finalized. He refuses to return my coins and refuses to issue my money. What right do they have to do that?"

"38: He keeps saying he'll talk to "Mahin". Excuses, excuses."

"39: Never saw the "proof" and he never sent back the coins or the money. They also blocked my account."

"40: At this point I'm just sick and tired. Even if they do unblock my account, it will just take them another 2 months to send my money? I wanted to terminate business right there and leave with what was rightfully mine."

"41: My documents need to be verified? They were, in January when we first started doing business all my info was verified."

"42: He then brushes me to the side and tells me to contact legal, who by the way has been contacted several times by my lawyer to no avail."

"43+44: I ask if my money will be sent when I send in notarised copies and he says he needs them posted as well. I'm thinking at this point, that they've stolen my money and at this point I just want to be told directly. It's been months since they received the coins. I even offer to pay him 10% of the money he owes me to just send the thing! No avail."

"45: No e-mails from "legal" as promised. No replies from him or the company. Weeks go by. Still nothing no more replies. Which brings me here."

"And although all of that would make this story pathetic (at best), it's likely that some of the folks who defended the OP here were themselves the OP's victim in the half-billion dollar MtGox heist."

This exchange or platform is based in Australia, or the incident targeted people primarily in Australia.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

• Known history of when and how the service was started.
• What problems does the company or service claim to solve?
• What marketing materials were used by the firm or business?
• Audits performed, and excerpts that may have been included.
• Business registration documents shown (fake or legitimate).
• How were people recruited to participate?
• Public warnings and announcements prior to the event.

Don't Include:

• Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
• Anything that wasn't reasonably knowable at the time of the event.

There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

• When the service was actually started (if different than the "official story").
• Who actually ran a service and their own personal history.
• How the service was structured behind the scenes. (For example, there was no "trading bot".)
• Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - CryptoXChange Withdrawal Refused

Date	Event	Description
June 7th, 2012 5:55:53 AM MDT	Main Event	Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

Total Amount Lost

The total amount lost has been estimated at $115,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

"So most of the participants in this thread from June 07, 2012 onward took (WME | Alexander Vinnick | the MtGox mastermind)'s side against Cryptoxchange, demanding that they return his money. And when Cryptoxchange protested that they couldn't yet do so due to an ongoing investigation, the folks here reflexively decided in favor of someone who is shaping up to be one of the world's most notorious criminals ever."

Total Amount Recovered

There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.