Crypto exchanges blocking user funds are nothing new. We have seen it happen countless times, sometimes due to vague reasons and even by mismanaging customer funds and going bankrupt. The real problem starts when the funds in question are actually substantial. So, generally, small ticket-size users do not face this problem. This is the same that happened with a Bitstamp user after the exchange blocks $100k in user funds without any explanation.
Bitstamp user complains on Reddit about being unable to withdraw funds
SlippyJerry, the user who faced this issue, got another Reddit user to post for him because he didn’t have enough credits. He said that Bitstamp robbed him of $100,000 in cryptocurrency, the current value of which is $85,000. He plans to buy a flat in Poland using the funds but has been unable to withdraw the same for over a year now.
First, Bitstamp asked him to do a wallet signature, after which he should have been able to withdraw the funds. However, once he did it, the exchange reported that they were unable to open it due to unknown reasons. To confirm, this is not just a technical error, SlippyJerry also sent screenshots to the management to confirm that he did everything they asked him to. Even after all this, his funds are stuck in the exchange.
SlippyJerry said that he transferred his funds to Bitstamp from a cold wallet in 2021. He gave all the required documents for KYC verification, like birth certificate, personal information and other papers. Still, his funds were locked out, and now he has no way of contacting them. So, the Bitstamp user is taking to social media in the hope that he can reach the exchange’s management and get his funds back.
Kraken takes a dig at Bitstamp
A Reddit user replied to his post saying,
“I don’t think Bitstamp works on the same method as Kraken, where you summon their support with but a whisper.
ISNT THAT RIGHT KRAKEN SUPPORT?”
And funnily enough, Kraken replied to his comment. Their support page said, “This is true. We’re easily summoned. ٩(˘◡˘)۶. Let us know if there’s anything we can assist with, friends! Bria from Kraken Support.”
Other Reddit users went crazy after this and started talking about how you could say ‘Kraken support’ 3 times in front of the mirror at 2 am, and magically, their representative would appear in front of you.
Some are even guessing that this thread could just be a PR attempt of Kraken. Whatever it is, this was pretty genius, said another user.
What are your thoughts as Bitstamp blocks $100k in user funds again, proving why cold wallets are the best? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Lost confidence in the monetary system could catapult Bitcoin to new heights, says Cathie Wood.