1. How is Bittrex engaging in the fight against illicit financial activity?
Bittrex is committed to fighting financial crime through a strong culture of compliance and dedicating appropriate resources to execute our regulatory obligations. We see the core concepts of combatting illicit financial activity as:
- Preventing, detecting, and reporting money laundering, terrorism financing, fraud, tax evasion, and market integrity issues in the spirit of and in accordance with applicable laws
- Maintaining transparency for customers who trade on the Bittrex exchange regarding compliance requirements, pricing, fees, and coin listings
We execute the above through using various screening and monitoring tools, maintaining a highly qualified and well-trained compliance and investigations staff, communicating regularly with government agencies, and investing in the continuous improvement of our anti-financial crime program.
We regularly respond to information requests from law enforcement agencies through our various operating jurisdictions and within legal frameworks for data and information sharing.
Bittrex is a member of the Chamber of Digital Commerce, whose mission is, in part, “to educate, advocate, and work closely with policymakers, regulators, and industry to create a more inclusive business environment that will incentivize innovation and investment in blockchain technology”.
Bittrex is also a member of the Crypto Market Integrity Coalition, which brings together market participants in the digital asset space who are committed to enabling a safe and sensibly-regulated crypto ecosystem.
Finally, we are proud to be a sponsor and member of the Anti-Human Trafficking Intelligence Initiative working towards proactively diminishing the prevalence of human trafficking, and ultimately furthering the positive influence virtual currency can have on the world.
We also encourage our customers and the public to get educated on the risks and regulations involving virtual currency:
2. Why do I need to submit an ID and personal information?
Customers are required to provide Bittrex with certain personal information, including, but not limited to, your name, address, telephone number, email address, date of birth, taxpayer identification number, social security number, photograph of your government-issued ID or other photographic proof of your identity, and information regarding your bank account.
Bittrex collects this information as part of its program to comply with anti-money laundering and sanctions laws, including Office of Foreign Assets Control guidelines.
Failure to provide valid information and documentation can result in preventing new account creation or disabling and closure of existing accounts.
Section 326 of the USA PATRIOT ACT requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. This federal requirement applies to all new customers and current customers. This information is used to assist the United States government in the fight against the funding of terrorism and money-laundering activities.
3. What happens to the data I submit to Bittrex?
Bittrex retains customer data for a period of no less than five (5) years or longer as regulations in various jurisdictions we are licensed require.
4. My account has been disabled. Why, and what can I do now?
Bittrex takes its commitments to customer protection, anti-financial crimes, and other compliance obligations quite seriously. We have built a robust compliance program and partnered with multiple third-party technology providers to verify identification, monitor transactions and IP addresses, and maintain security of customer accounts.
Accounts may be disabled for a variety of reasons, including compliance or Terms of Service.
When we receive indications that our customers may have been victims of fraud, account compromise, or have engaged in prohibited conduct, Bittrex may temporarily disable the account until an investigation is completed.
Notable examples of prohibited conduct include:
- Any activity reasonably linked to terrorism financing, human trafficking, child exploitation, Dark Web, narcotics, weapons, ransomware, tax evasion, money laundering, or sanctions evasion
- Engaging in activity within prohibited jurisdictions
- Engaging in activity with parties located in prohibited jurisdictions
- Potentially suspicious activity described in FinCEN’s Advisory on Illicit Activity Involving Convertible Virtual Currency or the U.S. Department of Justice’s Publication of Cryptocurrency Enforcement Framework
- Activity that deprives other customers of transparency and fairness within cryptocurrency markets
- Any other activity prohibited by local law.
If you believe your account has been disabled in error, please contact customer support here.
5. What scams or fraud techniques should I be aware of?
Bad actors may attempt to defraud customers using various techniques.
- Fraudulent transactions may result in the loss of your money with no recourse.
- If you are unfamiliar with cryptocurrency, how it works, and its risks, please do not make a purchase.
- Do not deposit funds or purchase cryptocurrency at the request of another person. If you deposit funds and provide access to your account credentials, like username/password or your API key, to a third-party, you may be at risk of loss of those funds.
Examples of frauds schemes include, but are not limited to:
- Traditional scams: A third-party emails or calls and says they are from a government agency or well-known company, then requests a payment. The scammer then coerces the customer to open an account (using their ID and personal information), then link their bank account. After money is deposited into the crypto account, the scammer will either convince the customer to transfer funds to a crypto wallet address or will simply take the customer’s login credentials and steal the funds directly. These scams rely on social engineering techniques and often target elderly persons.
- Fake cryptocurrency exchanges: Fake cryptocurrency exchanges scam potential victims by posing as a legitimate exchange, siphoning undisclosed fees from user accounts, or simply stealing funds altogether.
- Ponzi schemes: A Ponzi scheme has the following characteristics:
- The proposal promises high returns and low risks.
- The investments aren't registered or regulated appropriately
- A guarantee of consistent profits, regardless of economic conditions.
- The mechanics of the investment are overly complicated.
- No legal paperwork is available for the customer to examine.
- Users find it difficult to get their assets back.
- Account compromise: Cybercriminals are always looking for ways to try and take advantage of customers by accessing data and assets. Read here to learn more about maintaining digital security.
You may reach out to Bittrex customer service for questions and assistance here.
6. Why does Bittrex enforce a 10-day withdraw hold for deposits?
For certain customers, Bittrex requires any deposited funds, cryptocurrency and fiat, to remain on the platform for 10 calendar days. We implement this hold in order to verify deposited funds and protect vulnerable customers from bank and exchange fraud.
During those 10 days, deposited, verified funds may be traded on the Bittrex exchange, but not withdrawn.
7. I was unsuccessful with linking my bank account to my Bittrex account. Why?
There are multiple reasons why linking your bank account on the Bittrex platform may be unsuccessful. Examples of common bank account issues include:
- Incorrect submission of bank account information (account and routing numbers)
- The customer or bank is located in a jurisdiction where fiat is not supported
- The bank is located in one of Bittrex’s prohibited jurisdictions
- Customer information provided to Bittrex does not match customer information held by the bank
- One of Bittrex’s banking partners has declined to transact with the customer’s bank