WARNING! Do not send funds to Block Fi

Last month I sent some $LINK to Block Fi to earn interest on my holdings and this morning I woke up to an email from their investigations team saying that the funds were recognized as being from a “mixing” service. I don’t know if this does or will soon apply to all regulated exchanges but it would be wise to take another look at any terms of service agreements with whatever exchange before you send funds from Inc. to that exchange. I think hopefully this was just a warning by them and they don’t keep my funds. I report all my trades on my taxes so I’m not worried about that but I thought the community should know that the privacy crackdown is underway.

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I wonder if they would track the coins or if you’d be safe withdrawing to a private $LINK wallet and then transferring to them. I know extra steps are not favorable but might be the only way to prevent setting off flags.

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Very helpful to have shared your experience here. Maybe as part of improvements to documentation we can get a community-driven grid list of services such as:
Service | Accepting deposits from incognito? | Clean deposit? | Date of test
– BlockFi | True | False, flagged susipicious | 9 April 2021

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Thank you @Brakley for sharing this piece of information…if true this is damn alarming and well comes to show us all that indeed the crackdown by institutional banks and governments will be in earnest in near future and beyond…very very sad indeed… :sunglasses:

Incognito uses one single smart contract for all funds, which is very easy to identify and flag. Thanks for sharing!

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Sounds like blatant money laundering occurring here. Treat incognito like a darknet market wallet.

“But I do my crypto taxes”
Don’t think that playing by there rules will keep you safe. They stole all the Gold at the last Bretton woods agreement from every American. And those Americans trusted their government.

I cant think of a single reason why the gov should get a single Satoshi of my money.

They did not create crypto
They did not invest
They did not take the risk
They did not have the foresight

To quote the little red hen,
I planted the seed harvested the wheat, made the mix, cooked the bread. They want to help eat the bread? They can eat their own fiat.

To borrow from Jesus

Who’s image is on the coin?
“Cesar” they answered.
“Render to Cesar what is Cesars, and to God what is God’s”

Who’s image is on you? (Man was made in God’s image) was the unsaid point.

So, whos image is on a Bitcoin? They make me so mad. They steal all our purchasing power, lock us up, ruin our economy from a virus they probably made… and they want us to then pretend they have any authority in the crypto space.

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@Brakley Did you withdraw directly from Incognito to BlockFi, or did you withdraw to a personal wallet then to BlockFi?

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No. They said any attempts to thwart their tracking will result in rejection of funds

No money laundering here. I just value privacy and security.

Directly from incognito

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Yeah I got the same warning, twice. They said any more transactions coming directly from incognito or any other “Mixing services which attempt to obfuscate the source of funds" will be blocked. Either way I learned what “obfuscate” means so I guess it was a win-win for someone…

I stop sending crypto from Incognito to BlockFi a longggggggggg time ago…why…simple…BlockFi is got some stringent KYC policies…they a lending house so think about it…now I got funds there…why…simple to get paid…but yea…don’t tempt them to hold up your funds by sending funds from questionable sources…well what they would consider questionable… :sunglasses:

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Did they specifically mention incognito in their warning? @dpglobal

They just said no transactions coming from any “mixer” sites will be accepted in the future. They allowed 2 transactions for some reason. I still received the warning email each time. When I replied they just said be careful where the deposit funds come from.

Very interesting. Incognito is not named in etherscan and not easy to find on our site—I’m surprised it’s identifiable as a mixing type of service. It resembles an exchange, actually. Funds go to a specific deposit account and then get swept into a master wallet for safekeeping. A no kyc exchange actually can provide very similar anonymity. Thanks for posting the details!

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I dont think anyone in crypto should use block fi. Or anything like it.

Why?..and specific reason/s that you would wish to share with us @JoyRaptor?..Does it perhaps have to do with KYC policy that BlockFi has or something else?..just curious… :sunglasses:

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Any service that restricts freedom has no place in crypto, and people should not encourage such models flirting with Faustian bargans.

My keys
MY COIN.

It would seem a simple way around this would be to add the extra step of sending from Incognito to a personal wallet, and from there sending on to BlockFi. It will mean incurring the fee for an extra transaction, and depending on the currency you’ll want to wait for more blocks to be completed before transferring, but it would seem that would solve the issue.

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