Blogs & Articles: Controversy Erupts Over Volet Allegedly Withholding Bitcoin Funds 🔗 8 weeks ago

A heated dispute has surfaced on X, with allegations against Volet, a cryptocurrency service provider, suggesting they are withholding user funds under dubious pretenses. The accusations were made public by Giacomo Zucco, Director of Plan B Network, who claims that the company is refusing to return his deposited Bitcoin.

🚨🚨⛳️ALERT: @VoletCom seems to be stealing user funds!⛳️🚨🚨

Details:
While I dislike and generally avoid KYC off-ramps, preferring p2p exchange whenever it's feasible, for reasons of convenience I did use this one on a few occasions. The first few transactions to fund a USD…

— Dirty Giacomo High-Risk Zucco⚡️🌋🧀💀🧻 (@giacomozucco) July 9, 2024

In a detailed post, Zucco shared his experience with Volet, explaining that he had successfully used their service to fund a USD Mastercard several times. 

However, he encountered issues when Volet's support desk allegedly refused to credit a substantial Bitcoin deposit and demanded an "impossible chainanal challenge" as proof of the transaction's origin.

Zucco’s post read, "the 'condition' they require, in order to return the loot, is an impossible chain analysis challenge: giving them on-chain 'proof of origin' of any single output involved in the tx graph of my funding transaction." 

He further insinuated that the task was intentionally designed to be unachievable, effectively enabling Volet to retain his funds.

Social Media Emergency Manager and blogger Alessandro Del Bianco suggested that if multiple users faced similar issues involving significant amounts, it could raise serious concerns. 

In response, Volet defended their actions, stating that the coins in question were flagged as high risk, necessitating additional verification. "Nothing extraordinary was requested apart from screenshots that show the outgoing transaction at the source," Volet asserted.

Zucco countered, stating that he had provided the requested screenshots but was subsequently asked to trace the abstract origins of his funds, a task he described as impossible. He labeled Volet’s demands as tantamount to theft.

Volet maintained their stance, arguing that they were following regulatory protocols. "Please note that there are no 'immediate refunds' here. You can't send dirty crypto and demand immediate return. As a regulated institution, we have to collect information, analyze it, and then make a decision," the company posted.

Adding to the controversy, Applied Cryptography Consultant and developer Peter Todd highlighted an alleged hypocrisy in VoletCom’s actions. Todd claimed that Volet had already spent the "dirty" coins, mingling them with other customer deposits, which could potentially contaminate all customer funds.

So about those "dirty" coins that are so "dirty" @VoletCom can't send them back to @giacomozucco...

Turns out @VoletCom spent them, mixing them together with other customer deposits! 😂😂😂

Like, OMG, now all their customer funds are CONTAMINATED!!!

TELL @VOLETCOM YOU DON'T… https://t.co/PPmUkvL2ek pic.twitter.com/siXcMCDhSS

— Peter Todd/mempoolfullrbf=1 (@peterktodd) July 12, 2024

The X exchange has sparked significant debate, with many users calling for transparency and fair practices from service providers. 

Zucco has promised to keep the community updated on the situation in the coming weeks.

Story updated on July 17th, 2024

In a recent update, Zucco announced that his funds had been unexpectedly credited back to his credit card, and he received assurances from Volet that he could continue using their services. This development came without any further action on Zucco's part.

🔊📢🔔UPDATE🔔📢🔊
Good news, everyone!

While I was prepared to bring my campaign on @VoletCom to Trustpilot and at least one podcast, this week...my funds have been credited on my good old credit card...with a reassurance that I can keep using their services! This happened… pic.twitter.com/LKyVPVKotm

— Dirty Giacomo High-Risk Zucco⚡️🌋🧀💀🧻 (@giacomozucco) July 16, 2024

Zucco clarified that his accusations of theft against Volet are no longer standing, as he is now in control of a USD equivalent of his original deposit and able to use the service fully.

He emphasized the importance of privacy best practices in Bitcoin, such as using Coinjoin and JoinMarket to make transactions private and fungible.

Zucco stressed that Bitcoin-accepting services must accept valid Bitcoin transactions, including those from privacy tools, and that even if a service refuses to provide services based on chain analysis heuristics, they should return the funds unless stated otherwise in their terms of service.

He also highlighted the need for competent social media management in businesses, commending the individual who resolved his situation.

However, Zucco expressed a lingering doubt that his resolution might be linked to his social media influence, questioning whether an average user would receive the same treatment.

Finally, Zucco praised the Bitcoin community, describing it as full of honest, generous, and intelligent individuals with a no-nonsense attitude, expressing his gratitude for their support.