Goldman Sachs funded Poloniex exchange froze a large number of user accounts in the midst of executing a new know your customer (KYC) verification process.
Many people believe Poloniex’s verification requirements were due to the Circle acquisition, as the Boston-based firm is very adherent to regulatory policies like AML/KYC law. Recently, many Poloniex customers are seeing their accounts frozen unless they verify their identity.
Poloniex Customers Unhappy
Account holders on social media claim that after confirming their identity, they receive notification that they may now continue trading, but their previously functional account is now blocked.
Reddit user PauliWorli summarizes most legacy customer's complaints by saying: “I am a ‘legacy’ user on Poloniex and I was told to verify today when I logged in. I did that and promptly got an email reply saying I had been verified (My profile now says I have a ‘level 3 verification’ — the type that allows $25,000 per day). But when I go to trade it tells me ‘account frozen’ when I try to place an order. I did make a ticket and then checked Twitter and it seems many people have the same ‘now verified but still frozen’ problem. Can anyone help me here please?”
Most users seem to be complaining about the exchange freezing their accounts without providing a time-limit.
Other exchanges such as Localbitcoins and Bitfinex have also updated their KYC requirements but have carried out the process more smoothly than Poloniex. According to Coinmarketcap, Poloniex is the 25th largest crypto exchange in the world but will certainly slide down the list if the management keeps making such errors.