Editor: XAPO response at the bottom of this post.
XAPO, the company with the largest capitalization of all Bitcoin industry with a $40M record fundraising, is again experiencing the wrath of its users. A Redditor has indeed reported a mysterious case of funds not showing up: after transferring 10 BTC ($ 4,030) to his Xapo’s account, he suddenly experienced several problems:
I was pretty confident after the debacle that it is now safe and reliable as they have claimed to have ‘moved to a new system.’I’ve activated 2FA, logged in a couple of times to make sure it works, transferred around 10BTC, booked a hotel (at this point the card worked) and went on holiday. Nightmare begins on arrival. Card no longer works, insufficient funds. No panic at first, temporary problem i thought. I tried to log into my account and was greeted with an ‘unknown error’ message upon entering my 2fa. Now i had no access to the 6BTC left on xapo + the card did not work.
I email support about the unknown error – no response. The card did work on an ATM a couple of times, but only late at night(!!), it never worked during the day on atm machines or POS. Every time i tried to pay with the card I was asked for a passport as the local currency kept changing every time they swiped it.
More importantly, and major reason for CryptoCoinsNews to report this problem, XAPO support staff does not seem to undertake this situation with a proper appreciation, according to the same unfortunate user:
It took XAPO 5 days to fix the unknown error issue. They did not reply to any of my tickets. At this very moment their control panel html code is broken. Images are all over, unable to withdraw BTC. The card did not work yesterday and does not work today.Stay away from XAPO, their support is terrible and service they claim to provide – does not work. EDIT : 22h has passed since my post, no contact from XAPO support via xapo.com website or here.
On top of that, other cases were reported in the last 24 hours from various customers, sometimes coupled with delays to receive funds even after a fair amount of network confirmations:
Since yesterday I have received two 0.0000001 ghost deposits to my account. (Got a text message from XAPO). However, i cannot login.. Can you guys access your xapo account, or is it just me? Edit: I could login now, but all my BTC are gone.. I had 5+ and now its empty.. Edit: Now i have all my coins back.. The sum is now 5+ again rather than 0.. Have no idea whats going on.
This one asked:
I sent some bitcoins to my Xapo wallet and its been over 10 confirmations, but they are still not added to my account. How long does it take, any ideas?
Prosecutions have indeed been taken against Butterfly Labs by the widely respected American Federal Trade Commission, because of “Unfair or Deceptive Business practices”. The company who proposed the acquisition of mining equipment did not hesitate to rake in hundreds of thousands of pre-orders before issuing some devices many months later, devices that obviously became obsolete given the increase of Bitcoin network difficulty since the pre-order phase. Worse, the funds were knowingly diverted in this case, as underlined by the FTC attorney Helen Wong:
Jody Drake (aka Darla Drake), Nasser Ghoseiri, and Sonny Vleiside spent millions of dollars of corporates for personal shopping outings at Nordstroms and Bed, Bath & Beyond; to get massages; go to saunas; and to buy guns, while ignoring many customer orders that went unfulfilled or were significantly delayed
XAPO, although finally delivering the cards, nevertheless experienced a similar episode. The company announced with great fanfare a late June 2014 shipping of the cards while opening a beta signup list, free of charge. However, the release was finally postponed for four weeks, and worse, the various fees associated with the card usage increased dramatically, leading to a strong backlash from the potential buyers. Fortunately, the company has since clarified its offer, explicitly indicating the different costs attributable to this particular service.
As the Reddit post in the article states, we are currently migrating platforms with our provider, and some of our customers have experienced isolated issues with their cards as a result. If other users are experiencing any issues with their accounts, we encourage them to reach out to firstname.lastname@example.org and our customer service team will get back to them within 24 hours.
Images from Shutterstock.
Last modified: September 30, 2014 20:52 UTC