Vendor Bitcoin wallet was flagged by Robinhood

[Pinmebaby1moretime]

Not a stranger to bitcoin- I’ve bought from other vendors but last night, I needed to place an order with SSA. She sends me one wallet ID and I get the error message “Your account is restricted from withdrawing crypto at this time.”

I’ve never seen that before so I ask the vendor and she sends me a second wallet ID. But my account was locked until this morning. Then I get an email from Robinhood this morning saying:

“We also looked into the unusual activity on your account. Based on the results of our investigation, you fell victim to a scam.

Therefore, we're not able to restore any losses of assets that might have occurred.”

Definitely never happened when I bought from other vendors. I was working with Rose from SSA and I know many of yall have ordered from her too.

Anyone else had this happen? Not trying to fear monger or anything just trying to see if anyone else had this experience- no hate to the vendor either!

 

[Pipsko]

Did you send directly from your account to the vendor?
If yes, that's the speed run version of getting your account flagged or banned.

Use an intermediate wallet, e.g. Exodus or similar, to pay the vendor.

 

[indolent]

Sorry that happened.

I'm no crypto guru (to put it mildly), but I think this is why it's important to always use a self-custodial wallet like Exodus as an intermediary to send payment from.

 

[nonyabizznez]

Anyone else had this happen? Not trying to fear monger or anything just trying to see if anyone else had this experience- no hate to the vendor either!

Please reread the following:

Use an intermediate wallet, e.g. Exodus or similar, to pay the vendor.

All kinds of shenanigans can happen if you try to pay from your exchange (PayPal, Coinbase, Kraken, Robinhood etc). Transfer to external wallet. If you used a Robinhood wallet my apologies. I don't recommend using your exchange's wallet products either. Exodus is a good recommendation.

In other shady crypto news Truist (formerly SunTrust) no longer transfers funds to Crypto.com! Automatic fraud alert requiring customer service intervention.

Kraken is ceasing customer accounts giving members a time window to convert and transfer funds out for good. The email notification is alarming.

Buh Bye Crypto.com and Kraken!

 

[peptideusername]

Well I think it's pretty clear what happened and I don't need to beat a dead horse. I appreciate everyone's good advice here!

Paying from an exchange wallet (PayPal, Robinhood, kraken, coinbase, crypto.com etc al) is kinda like asking your drug dealer to meet you in the lobby of your bank, withdrawing the money from the teller and then turning around to buy your drugs while still in line.

 

[dogmom]

I finally broke down and got an Exodus wallet. I was afraid of that happening with Coinbase. It is also why I don't recommend people use Paypal because Paypal will also close down your account if they think you bought a prohibited item.

 

[Loves2eat]

I’ve never used Robinhood, but when I was taught crypto I was told to open an Exodus wallet since sending crypto to pay a vendor direct from PayPal, cash app, etc. will get your account suspended. My husband uses coin base for investing and wanted to pay for me from there until I explained why it wasn’t a good idea.

 

[nonyabizznez]

Well I think it's pretty clear what happened and I don't need to beat a dead horse. I appreciate everyone's good advice here!

I was gonna tag you in my response because everything I initially learned about crypto came from you!🙏

But I forgot your username! 🤣

 

[Squeezethebox]

Did you send directly from your account to the vendor?
If yes, that's the speed run version of getting your account flagged or banned.

Use an intermediate wallet, e.g. Exodus or similar, to pay the vendor.

What's wrong with withdrawing bitcoin directly to the ID they provide. That's what I do. Is that not secure?

 

[exploitedworkerbee]

Well I think it's pretty clear what happened and I don't need to beat a dead horse. I appreciate everyone's good advice here!

Paying from an exchange wallet (PayPal, Robinhood, kraken, coinbase, crypto.com etc al) is kinda like asking your drug dealer to meet you in the lobby of your bank, withdrawing the money from the teller and then turning around to buy your drugs while still in line.

This makes sense when you understand noodle custody, but I think people only think about sending nuggets as a step-by-step process they must follow, becoming overwhelmed by steps they don't understand at a conceptual level. You've really gotta think about it as sending noods, not nugs.

 

[brentm]

Satoshi taught us all this in 2009 when he released his Bitcoin whitepaper.



It's sheer laziness that Bitcoin public keys are continually reused. This could all be solved if Chinese vendors would change their wallet address once in a while.

Think of it like dirty underwear. Sure you can push it a few days... maybe weeks. But at some point, you're going to want to change them. And in Bitcoin, you are not limited to a single wallet public key/address.

It's as easy as getting a new IP addresses for wallets worth their salt. That might be a poor analogy, but if your wallet doesn't support multiple keys. Just backup your existing wallet and make a new one. Sweep old to new.

 

[Pinmebaby1moretime]

Thank you everyone for your response! My weekend goal is to figure all this out- you guys are awesome!

 

[Pipsko]

What's wrong with withdrawing bitcoin directly to the ID they provide. That's what I do. Is that not secure?

Exchanges have the habit of checking where the withdrawal goes. If anything suspicious, your account might get flagged and the transaction will not go through. Worse case your account gets banned and funds frozen.

As previously mentioned if paying the vendor directly it's a speedrun to make it happen.

ALWAYS use an intermediate wallet as mentioned.
It is a little bit more work but it is good clinical practice.

This is not a theoretical scenario. I have seen several people now, that got their account frozen, flagged or banned.

Just use protection.

 

[Pinmebaby1moretime]

Exchanges have the habit of checking where the withdrawal goes. If anything suspicious, your account might get flagged and the transaction will not go through. Worse case your account gets banned and funds frozen.

As previously mentioned if paying the vendor directly it's a speedrun to make it happen.

ALWAYS use an intermediate wallet as mentioned.
It is a little bit more work but it is good clinical practice.

This is not a theoretical scenario. I have seen several people now, that got their account frozen, flagged or banned.

Just use protection.

I’m SO glad I asked.. funds frozen would be an actual nightmare! Thanks so much everyone!

 

[peptideusername]

This makes sense when you understand noodle custody, but I think people only think about sending nuggets as a step-by-step process they must follow, becoming overwhelmed by steps they don't understand at a conceptual level. You've really gotta think about it as sending noods, not nugs.

 

[peptideusername]

I was gonna tag you in my response because everything I initially learned about crypto came from you!🙏

But I forgot your username! 🤣

How did you manage that? Username is half of my username! 😂

 

[nonyabizznez]

How did you manage that? Username is half of my username! 😂

Right? It's the fibrils and oligomers.🙄