TransferWise closed my account and took my funds, what should I do?

Hey everyone! I’m a market maker on LocalBitcoins.com, dealing with bitcoin trading. I got started in Norway where the banks generally have a decent or neutral stance on bitcoin. They let people buy and own it, but they do caution about the risks and scams out there. I’ve been upfront with my banks and the Norwegian government about my trading as a market maker on LocalBitcoins, and they’ve given me the green light. So, I was doing pretty well in Norway, and I thought it’d be smart to branch out to a larger market. The Euro caught my eye, and that’s why I set up a TransferWise account since it was quick and cost-effective. After a couple of months of trading BTC using them, they reached out to ask what I was using my account for. I told them I was trading bitcoins, and she didn’t say much else. A few hours later, boom, my account was blocked, and they canceled all my transactions, which caused quite a few problems. Turns out, they don’t allow any transactions related to bitcoin. I found that buried in their acceptable use policy "We do not provide our services to businesses or support transactions which involve (...) bitcoin or any other cryptocurrencies". I really should have read the terms more carefully before opening the account with TransferWise. I guess I was pretty naive.

Thats just really sad , thanks for the headsup for other members of the forum who are using transferwise for BTC exchange. I highly doubt there will be a legal action as they have already closed your account for not following their terms and conditions, there cant be any legal action against you as u have not committed any fraudulent activity .

From the look of things, I don't think they have the right to confiscate your earnings all they should have done is to allow you withdraw your money and deny you their service because you violated their terms which you unknowingly entered into. I think you should write them or study their terms to know your options. I don't think they would sue you. Its a pure case of offer and acceptance and if they are denying you, they should refund your money back to you.

Thanks for the replies iHercules and audaciousbeing. It's been four days since they shut down my account, and I haven't heard anything from them since. I decided to send them an email after I discovered I broke their rules. Not sure if it is a good response, but at least it is an honest one. -------- Hi, I have talked with your customer service today regarding the deactivation of my account. To my surprise I've been notified that transactions of any kind involving bitcoin is not allowed. After the conversation I did find this stated in the acceptable use policy - "We do not provide our services to businesses or support transactions which involve (...) bitcoin or any other cryptocurrencies". I understand I have violated the acceptable use policy, and I'm very sorry for this. I take full responsibility for my wrongdoings and will cooperate in any way moving forward. I should have investigated the terms of agreement carefully before opening an account with TransferWise. Up to this point, I was not aware that my activities was not allowed. I have been very naive to say the least. Norwegian banks such as Skandiabanken [1], Nordea, Danske Bank and DnB have taken a positive or neutral position on bitcoins, allowing people to trade and own bitcoins, but warning against volatility and fraudulent abuse. I have reported my activities, that I operate as a market marker on LocalBitcoins to my banks and my government in Norway, and this have been approved by all. I'm writing this to give a backstory of my experience with banks and bitcoins before I established a TransferWise account in good faith.  In Norway both government officials, media and banks have stated positive attitude towards bitcoin and cryptocurrencies. The Norwegian government have allowed bitcoin exchanges to operate [2] and they grant tax deductions on losses due to bitcoins trading [3]. All profits are subject to capital gains tax and wealth tax. I report everything. I'm a strong believer in the case for bitcoin and cryptocurrencies. I think they would solve some of the worst consequences of the financial system we have today, such as income inequality, corruption and fraud. Not to mention the opportunities cryptocurrencies can provide to third world countries, where banking is scarce and expensive. I also believe that cryptocurrencies will offer a peaceful way out of the coming financial crisis, which I personally believe will be the worst in recorded history. You are in possession of most of my life savings from work and my profits from trading bitcoin. Please return the funds to my Norwegian bank (Skandiabanken) which do allow me trading bitcoin.  I understand I have broken your rules. In all modesty, in the future I hope you will change your attitude towards bitcoin and other cryptocurrencies, trying to find common ground and good compliance rules for a greater purpose.  Yours sincerely [4goals] [1] http://e24.no/privat/bitcoin/naa-faar-du-bitcoin-i-nettbanken-kan-ikke-fornekte-ny-teknologi/23996559 [2] www.bitcoinsnorway.com [3] http://www.skatteetaten.no/no/Bedrift-og-organisasjon/rapportering-og-bransjer/e-handel/skattemessige-konsekvenser-ved-bruk-av-bitcoins-og-andre-virtuelle-valutaer-for-privatpersoner/ --------

You are being a saint in this. what you are doing is absolutely correct; in case you have to sue these bastards, you want a demonstrable chain of evidence to show that they may have caused you damages. being polite and concise only builds your case. You may have violated the TOS, but usually that should mean an account deactivation with return of funds, you were a verified customer obviously with your self described volume. You have not violated and AML/KYC law, which is the only vehicle by which they can deny you your money, this decision is seemingly totally at the behest of the platform. If they try to dick around with your money, as a trader, they have caused you damages by denying you opportunity cost. Essentially, they cannot hold your money for this. If they do, get in that ass. Liqui is fucking around with me atm, they dont understand what they are getting into. im going to let it happen

Call them and ask them what they are going to do with your balance? My guess is you get a check in the mail in a month. But... hard to say. Suing before confirming that they have no intentions to return your balance is a bad idea. It makes you look funny, when they are "processing" your balance for return. That's my guess.

Transferwise started off being positive about Bitcoin, but they have to protect their banking relationships and that's far more important to them than a dribble of BTC business. Bitcoin causes them, or rather many of their banks, too many potential regulatory head aches to touch. I've never heard of a legit business, and Transferwise certainly is one, keeping anyone's money. They'll return it to you. Keep contacting them and if they stay silent then get a lawyer on to it. Before you do that though hit them up on Twitter. Companies are usually much more responsive on there.

This is good advice.

Thanks for the replies guys. After days of waiting... ------ Hi 4goals Thanks for getting back to us with this clarification. Unfortunately the policy for not supporting bitcoin or any other cryptocurrency related transfers remains the same. It’s not so much our own attitude towards bitcoin but has more to do with regulations and agreements with banking partners. This is what TransferWise’s co-founder Kristo Käärmann posted about bitcoin back in 2013 when we stopped supporting bitcoin related transfers https://transferwise.com/help/article/2534649/other/bitcoin. The remaining balance of your Borderless account will be refunded to your Norwegian bank account within 30 days. ------- So my losses amount to a couple of transfers that was refunded and the alternative cost of having my bankroll in play. It sucks, but it feels like a big relief now. In the meantime I have tried to find alternative banks, and Fidor bank in Germany seems like a good choice. In Great Britain it seems a little bit harder to find a good alternative.

Fidor operates in the UK now, but their accounts are missing quite a few regular banking features at present. Other than that I've heard that Nationwide is the least crypto hostile mainstream operation, but that could change.

See, good thing you didn't go zerk.

Yep, it's a common thing.. https://www.trustpilot.com/review/wise.com?search=closed As per the above comment