Coinbase threatened to close my account for gambling

Discussion in 'Bitcoin Sports Betting' started by 2damoon, Jun 10, 2016.

  1. 2damoon

    2damoon Member

    I've been a Coinbase customer for a couple of years but recently I got the following message after I made a transfer to an online sportsbook.

    "Our records indicate that your account may be involved in transaction(s) related to online gambling. Please be aware that pursuant to Appendix 1 of our User Agreement, Coinbase Services may not be used in connection with online gambling (https://www.coinbase.com/legal/user_agreement).

    If you have sent bitcoin to an online gambling site or have received bitcoin proceeds from online gambling, please be aware that this is a violation of our Terms and we respectfully request you cease such activity."


    Has anyone else received this?
     
  2. uglymug

    uglymug Member

    i would estimate that half off all coinbase users have received one of those emails for one reason or another. i guess you can't blame brian armstrong for wanting to stay out of jail. if you are using a bitcoin exchange in the usa to buy your btc then you should use an intermediate wallet to send them to a casino or sportsbooks. coinbase don't care what you do with your bitcoin so long as you don't send them from their wallet directly to some off-shore gambling site.
     
  3. Hernia

    Hernia New Member

    Every time I deposit at Nitrogen Sports they give me a brand new btc address to deposit too. Shouldn't all gambling sites be able to mask where the money is going? It doesn't cost anything to generate a new bitcoin address.
     
  4. Humble Servant

    Humble Servant Active Member Staff Member

    Maybe the problem is withdrawals. Coinbase are able to tell when a deposit is made to their wallet from a gambling site.

    I presume when Coinbase close your account, they give you an opportunity to move your money elsewhere? They don't just steal your coins.
     
  5. uglymug

    uglymug Member

    Yes. If you continue to send btc to gambling sites after your written warning you will be asked to move your bitcoin to another wallet.
     
  6. i closed my account after they pivoted to ethereum. that fred ehrsam blog post was a despicable piece of score settling against bitcoin core because they wouldn't do what brian armstrong wanted.
     
  7. Humble Servant

    Humble Servant Active Member Staff Member

    Coinbase have partnered with PayPal in a deal that will allow PayPal customers to sell their bitcoin on Coinbase and have the dollars deposited directly into their PayPal wallet. This service will only be available in the United States PayPal customers at launch.

    I can see this service being very useful for gamblers who want to cashout from btc to US dollars, although they will have to avoid sending the btc directly from the online sportsbook to their Coinbase wallet.
     
    Last edited: Jul 5, 2016
  8. Spud

    Spud Member

    coinbase are a total disaster when it comes to customer support. i think they are best avoided anyway. i had to wait 2 weeks to get a reply to my support ticket. you would never guess that they've received over $70 million in venture capital funding.
     
  9. EthHead

    EthHead Member

    You also need to be careful if you use Circle for online gambling. Be sure to use a middle-man wallet if you are a Circle customer.
     
  10. Kaboom

    Kaboom Member

    The owner of Kickass Torrents was arrested in Poland by the U.S. government in part because of information they received from Coinbase. Anyone that uses this KYC scumbag exchange is asking for problems.
     
  11. EthHead

    EthHead Member

    Hopefully once tumblebit is released it will become super easy to launder your bitcoin after you have used them at a gambling site. Then you'll have no problems sending them to Coinbase or Circle.
     
  12. 4TheWin

    4TheWin Member

    Coinbase seem to spend all the millions of VC money they received on KYC and AML. I see very little innovation at Coinbase these days. Being able to send dollars, euros or bitcoin from iMessage on any iPhone using Circle.com is pretty amazing.
     
  13. Gooch

    Gooch Member

    There are a lot of rumours swirling that Coinbase are insolvent so people should be careful not to keep too many bitcoin in their CB wallets.
     
  14. Humble Servant

    Humble Servant Active Member Staff Member

  15. NKOTB

    NKOTB Member

    Coinbase are basically the PayPal of bitcoin. They have way to many rules and regulations so I don't understand why anyone uses them.
     
  16. Umair

    Umair Member

    most crypto sportsbooks give you a clean address every time you make a deposit so they shouldn't be able to tell what you are doing with your bitcoin. if the online sportsbook that you are using does not generate a new address for each deposit then you should find a new book.
     
  17. Humble Servant

    Humble Servant Active Member Staff Member

    We are hearing a lot of reports that CashApp are also closing accounts that are being used to buy and sell cryptocurrency for online gambling. If you use either Coinbase or CashApp then you should use an intermediate wallet like BRD or GreenWallet. Otherwise they'll likely link your account to a gambling site and you'll get shut-down.
     
  18. 4TheWin

    4TheWin Member

  19. Humble Servant

    Humble Servant Active Member Staff Member

    Yes, I can most wallets implementing this technology as an additional option over the next couple of years to improve fungibility.
     

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