Ask HN: Sequoia's Coinswitch / Kuber Scam – Theft via perpetual KYC delay

2 pointsby ninefoundation6 lat temu1 comments

Sequoia-backed Coinswitch.co claims to offer easy no-login crypto trading, but then selectively steals the largest of orders.

My experience: 23 days ago, I was attempting to use Coinswitch, when they froze my ~$6000 ETH transaction (https://coinswitch.co/app/exchange/transaction/28f07022-4ab2-4fa6-b093-fe61a6bcb82f#). These were fresh ETH, recently withdrawn from Coinbase. Immediately after freezing 23 days ago, Coinswitch demanded KYC, which I immediately submitted. Then, the stalling began. Eventually, 13 days ago, they claimed that the first KYC video was blurry, so I immediately resubmitted the video. Ever since then, Coinswitch has continued to delay, saying that there's no ETA at all, refusing to return the ETH to the original address that I sent them from.

This is despite their TOS suggesting that they should've refunded my ETH within 72 hours (https://coinswitch.co/terms)

What happens to the funds they seize and refuse to process KYC on? -- They pocket them, of course. No wonder their founder Ashish Singhal has said in recent interviews that they have no need to ever raise investment money again. Very nice scam.

MANY similar accounts, seemingly at an increasing rate lately, along with many of their positive reviews appearing to be faked, as they review only coinswitch and nothing else:

+ https://www.reddit.com/r/Bitcoin/comments/ei0h8m/coinswitch_exodus_scammed_6500_euro_coinswitch/

+ https://icorating.com/coinswitch/reviews/failed-order-no-refund-166718/

+ https://www.trustpilot.com/users/5fbd774c44c93b001a51925e

+ https://www.trustpilot.com/users/5f67ddc5b7e94014a9bfeb7a

+ https://www.trustpilot.com/reviews/5fa411015e693f06f87abd9a

+ https://www.trustpilot.com/reviews/5f44b70302e85708c8d81cf1

+ https://www.trustpilot.com/reviews/5f2fab9e1a5a69026845fb9f

+ https://www.trustpilot.com/reviews/5f05f02a3f06f20a94dc262b

+ https://icorating.com/coinswitch/reviews/this-website-is-stealing-peoples-141616/

Sequoia - Is this the type of company that you back?

HN - Is this the newest crypto startup scam?

1 comments

ninefoundation6 lat temu

Certainly would not have trusted the company with so much money if Sequoia's name wasn't plastered all over its marketing.

Happy to share more details / proof in the comments. HN restricted the length of the post to 2k chars.

HN: what can I do?

Clickable links:

https://coinswitch.co/

https://coinswitch.co/terms

https://coinswitch.co/app/exchange/transaction/28f07022-4ab2...

https://www.sequoiacap.com/companies/