The controversy of Changelly-Monero [XMR] is back in the cryptocurrency space. This time, a spokesman for Changelly, one of the world's major cryptocurrant exchanges, confirmed that the platform was holding private money in the event of suspicious transactions.
In a discussion with AMBCrypto, Ilya Bere, Changelly's Chief Operating Officer said:
"Although the measures we take may seem unhealthy at first, they help us prevent fraud and protect innocent users. Because of the undetectable nature of XMR, it has frequently been used for fraudulent activities.Not only Monero, however, but also any cryptocurrency could be involved in this. "
Bere also spoke of the recent incident in which a large amount of XRP transactions at BTC were found suspicious by the platform, post that, froze the transaction until liquidation. However, the user who initiated the transaction was not found, but the funds were returned to the true owner of XRP.
The COO also stated that Changelly received funds compromised by various services such as Bancor, Bitthumb, Coincheck, among others. He also argued that the exchange offered legal assistance to the authorities in finding the hackers and recovering the funds.
In July, the cryptocurrency platform was also involved in a security breach case in which about $ 23.5 million was dried up. A part of the stolen cryptocurrency would be transferred to Changelly. In this regard, Changelly's CEO stated that the hack was unpredictable and the platform froze the stolen BNT [Bancor’s native token] as a recovery procedure.
Later, with regard to government regulations in the cryptocurrency space, Bere said that it is inevitable to avoid regulatory bodies for trade in cryptocurrency and other services as "a side effect of mass adoption".
Recently, Monero [XMR] and other privacy currencies have been examined by several exchanges since transactions made with these coins can not be traced and is used for illegal activities. Even the Monero mining malware has seen a significant increase in recent months, running against the background of several online portals.
In addition, he also attracted the attention of governments, such as Japan. The country is known to be one of the first to adopt cryptocurrencies and blockchain technology. The regulatory agency, Financial Services Agency of Japan [FSA] recently commissioned the cryptocurrency exchanges to eliminate private currencies from privacy, due to the idea that this sector of cryptocurrencies was the most favored by the underworld.
At the start of this year many users waged war against Changelly supports the platform to make money with fraudulent activity and steal millions from its user base. The controversy surrounded Changelly when he launched a mandatory KYC [Know-Your-Customer] procedure for members.
At the moment, users have reported a case of lack of information regarding KYC, which led to customer non-compliance. After publishing this, many transactions that have not been verified due to KYC non-compliance have been withheld.
Over the same period of time, the currency disappeared from the platform, leaving uninformed users, eventually leading them to believe it had been eliminated. However, during an interview with AMBCrypto, the platform clarified that the currency was not canceled but was suspended due to an update.
Vector0x16, a follower of Redditor and a cryptocurrency shared an opinion stating:
"My advice also not to use Changelly means never exchange all your stock in a single transaction, regardless of the service or the exchange you use You can own your coins only if you own the private keys of the wallet that holds them. "
Another Reddit user also wrote:
" There is a reason why Changelly is listed under the heading "scam" of this subtitle They have even stopped responding to these posts because they suffer too much abuse here – do not use Changelly. "