Cash App Concerns \ stacker news ~bitcoin

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917 sats \ 35 comments \ @siggy47 9 Jun bitcoin

I used to use cash app for my bitcoin dca and I never had any issues. I would regularly and reliably move my sats to self custody. In orange pilling family and friends, I would recommend cash app to new bitcoiners who weren't ready for peer to peer buys.

Over the past few days, one of my friends contacted me about a problem he was having moving his bitcoin from cash app. His transaction was flagged as a "scam."

He contacted support, and this is the response he received:

For security purposes, bitcoin transactions are subject to review and occasionally transactions are declined.

Please transfer the funds to a different wallet address. Alternatively, you may either continue holding your bitcoin in Cash App or sell your bitcoin and attempt to withdraw the dollar amount to a linked bank account.

For more information, visit our Acceptable Use Policy: https://cash.app/legal/us/en-us/acceptable-use-policy

My friend responded by saying that he tried different addresses, without success. The support rep then recommended he just keep his bitcoin on cash app!

Has anyone else run into this issue? Is it a sign that Jack only wants you to use his wallet? Maybe this is an isolated incident?

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86 sats \ 10 replies \ @Jon_Hodl 9 Jun

It sounds like he’s trying to send to something like a gambling platform or perhaps some sort of address that’s associated with illegal activity (regardless if there’s nothing immoral with it).

It’s best to always send to a new address every single time.

Even better to have an entirely different wallet just for withdrawals from Cash app to ensure he doesn’t accidentally mix sats with any addresses that chain analysis companies deem “unsatisfactory”.

0 sats \ 9 replies \ @siggy47 OP 9 Jun

Interesting you say that. He told me he sends directly to cold storage (not best practice) using a fresh address each time.

36 sats \ 5 replies \ @WeAreAllSatoshi 9 Jun

Sending directly to cold storage isn’t a best practice?

71 sats \ 4 replies \ @siggy47 OP 9 Jun

I'm pretty sure I was told that sending to an "intermediate wallet" that is self custodial, and then sending to cold storage improves privacy when the origin is a centralized exchange.

50 sats \ 0 replies \ @Mishawaka 10h

How would that improve privacy? The exchange would see:

Exchange wallet --> intermediate wallet --> end wallet

50 sats \ 1 reply \ @Signal312 17h

But then you'd want to coinjoin before sending to cold storage, no?

0 sats \ 0 replies \ @WeAreAllSatoshi 10h

I think this has to be done in order to be useful. Otherwise it's just as @Mishawaka said here: #1002518

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36 sats \ 0 replies \ @WeAreAllSatoshi 9 Jun

Ah, that could be

36 sats \ 2 replies \ @Jon_Hodl 9 Jun

Does he run his own node?

0 sats \ 1 reply \ @siggy47 OP 9 Jun

36 sats \ 0 replies \ @Jon_Hodl 9 Jun

I wonder if a chain analysis company has his xpub

140 sats \ 3 replies \ @0xbitcoiner 9 Jun

Super sketchy! Hope Cash App isn't having any BTC liquidity issues.

142 sats \ 0 replies \ @siggy47 OP 9 Jun

That's what the little guy wearing the tinfoil hat was yelling into my ear.

36 sats \ 1 reply \ @028559d218 9 Jun

Liquidity... as in shortages???

36 sats \ 0 replies \ @0xbitcoiner 9 Jun

Yeah, that's the worst case scenario, but maybe @SimpleStacker's right! #1001850

110 sats \ 2 replies \ @BlokchainB 9 Jun

Cash app booted my buddy without reason. My guess is fraud is picking up on the platform and innocent bystanders are collateral damage

70 sats \ 0 replies \ @kepford 9 Jun

This makes the most sense to me with the info we have.

84 sats \ 0 replies \ @siggy47 OP 9 Jun

Maybe

100 sats \ 0 replies \ @optimism 9 Jun

archived link of the AUP for anyone else getting tired of trying new tor circuits as nearly all of them are blocked ugh.

125 sats \ 0 replies \ @grayruby 9 Jun

We should definitely keep an eye out for others having similar issues. Could be a one off but could be something more substantial if others are having this issue too.

46 sats \ 2 replies \ @kepford 9 Jun

Was it an on-chain transaction or lightning? Just curious. Sounds like it was on-chain.

I really recommend people take bitcoin to self-custody via lightning vs. on-chain. Then you can move it on-chain to cold storage later. Obviously the exchange knows you acquired a certain amount of bitcoin but they would have a much harder time tracking where it ends up.

70 sats \ 1 reply \ @siggy47 OP 9 Jun

He lives in New York. I do know that cash app did not allow lightning in NY when it was rolled out everywhere else a few years ago. I don't know if that is an option now. This transaction was on chain.

41 sats \ 0 replies \ @kepford 9 Jun

FWIW I've never had issues with CashApp or Strike but I know that some people have had issues with both. ALM and KYC regulations are terrible and responsible for most of the issues IMO.

36 sats \ 1 reply \ @gbks 19h

Happened to me with Paypal. Small amount, just wanted to try out the feature. Was impossible to get the bitcoin out (self-custodial wallet, fresh addresses, site just threw error messages), support gave the same answers as in the post (security, for my own protection) and offered no solution, had to sell the bitcoin again and left the platform. Good to only keep minimal amounts on platforms and do test-runs before doing anything with even slightly larger amounts.

0 sats \ 0 replies \ @Hodl117 13h

I had the same problem on PayPal. After multiple support tickets, they told me it was my VPN. I reluctantly turned it off, and it allowed my tx to go through.

36 sats \ 2 replies \ @optimism 9 Jun

What I find a bit odd is that I cannot find anything about this in the (cached) AUP, at all. The word decline isn't even in there; it solely focuses on account suspension and termination.

154 sats \ 1 reply \ @siggy47 OP 9 Jun

Interesting. I think I will have my friend ask support to pinpoint exactly what part of the AUP applies in his case.

36 sats \ 0 replies \ @optimism 9 Jun

Yes. I think that's the best path from here.

Sounds like support staff hallucinations - maybe they went hard on their goose: "Answer this ticket, goose" lol

69 sats \ 2 replies \ @SimpleStacker 9 Jun

Maybe your friend is the one who is flagged and not any particular bitcoin address?

51 sats \ 0 replies \ @kepford 9 Jun

Indeed. I was once flagged by a bank due to a stupid mistake by a bank support person. They would not tell me this because they thought I was trying to commit fraud.

I asked to talk to a manager on a different call and was able to figure out how this mistake happened but needless to say it was a wake up call as to how quickly you can lose access to a lot of money by human error.

51 sats \ 0 replies \ @siggy47 OP 9 Jun

That's what I'm thinking. That's why I'm wondering if anyone else has experienced this with cash app?

P. S. My friend is no scammer. He's a Boomer like me. He couldn't figure out how to pull off a scam if he wanted to.

39 sats \ 0 replies \ @justin_shocknet 9 Jun

Had a problem last week paying a contractor, been sending to the same address every 2 weeks for years... Now blocked.

52 sats \ 1 reply \ @Educational_Stacker 9 Jun

What are the major problems of Cash app?

10 sats \ 0 replies \ @earnbitcoin 19h

Most recently, fees -- on any buy under $200, let's say.

$0.99 minimum per buy. Another percent or two lost from the cut they take from the exchange rate.

Been quite a while since I've said this ... but F Jack!

0 sats \ 0 replies \ @stack_harder 16h

sounds like your friend probably got himself flagged for something and that is the issue, as opposed to the recipient address.

maybe he could try using anyother kyc platform , like strike, then try sending from cash app to there and see what happenes (just to check if the same error happens)