Cashapp blocked my USDC transfer to Exodus wallet, citing a TOS violation

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shirasu893

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I attempted a transfer of nearly $1000 in USDC(ETH) from Cashapp into my Exodus wallet. Before this, I had completed 2 successful sends to the very same wallet: (1) a modest BTC amount, and (2) a sizable USDC(ETH) sum the week before, which I then spent on peptides. This most recent attempt, however, was declined "for security reasons." Upon contacting Cashapp customer support, I was told their algorithm had concluded that permitting USDC to go to that address (my Exodus wallet) would "violate Cashapp's terms of service."

Is there any workaround for this?
 
Choose a trustworthy seller. I have bought from Exodus and Coinbase without any issues. It seems certain sellers have been flagged for fraud. The seller I use has given me no trouble.
 
Just create a different wallet and send your funds over to that one. If there's still something left in the previous wallet, you're able to move it into the new one, or the other way around.
 
5byfive said:

Just create a different wallet and send your funds over to that one. If there's still something left in the previous wallet, you're able to move it into the new one, or the other way around.
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That's a solid suggestion. Phantom is one I really enjoy using.
 
5byfive said:

Just create a different wallet and send your funds over to that one. If there's still something left in the previous wallet, you're able to move it into the new one, or the other way around.
Click to expand...
Are you talking about a fresh Exodus wallet, or a wallet inside a new app?

I was thinking I could set up a new user account on my PC and then make a brand new Exodus wallet under that user. My concern, though, is that the Cashapp algorithm will see the earlier failed attempt at a similar transfer and block a similar transfer to a new, unknown wallet too. Still, it's worth a shot.

Do you think it could matter that a similar large transfer happened so recently?
 
Oldguy said:

Choose a trustworthy seller. I have bought from Exodus and Coinbase without any issues. It seems certain sellers have been flagged for fraud. The seller I use has given me no trouble.
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Yet this vendor is one I've never dealt with before, and the transfer isn't going from Cashapp to them — it's going to my Exodus wallet. Or could the vendor I used earlier this week be the issue?
 
For getting into crypto, Cashapp, Venmo, and Paypal ought to be treated as last resort options.

If you plan on making purchases regularly from here on out, it's better to just set yourself up with Coinbase, Kraken, or Binance.
 
shirasu893 said:

I attempted a transfer of nearly $1000 in USDC(ETH) from Cashapp into my Exodus wallet. Before this, I had completed 2 successful sends to the very same wallet: (1) a modest BTC amount, and (2) a sizable USDC(ETH) sum the week before, which I then spent on peptides. This most recent attempt, however, was declined "for security reasons." Upon contacting Cashapp customer support, I was told their algorithm had concluded that permitting USDC to go to that address (my Exodus wallet) would "violate Cashapp's terms of service."

Is there any workaround for this?
Click to expand...
About 12 months back, the same thing happened to me with Cashapp. I spent what felt like forever chatting with their AI "customer service"... Eventually I told that AI to kiss my a**, and then an actual human rep warned me that my account could be suspended for speaking to their "reps" in that manner. Apparently you can verbally assault a computer now...

These days I purchase straight from exodus. My suggestion would be to try moving your crypto back into your bank and stay away from cashapp.
 
maokai said:

For getting into crypto, Cashapp, Venmo, and Paypal ought to be treated as last resort options.

If you plan on making purchases regularly from here on out, it's better to just set yourself up with Coinbase, Kraken, or Binance.
Click to expand...
10000% agreed.
 
shirasu893 said:


Do you mean a new Exodus wallet, or a wallet in a new app?

It occurred to me to create a new user on my PC and then create a new Exodus wallet for that user. But I still worry that the Cashapp algorithm, noting the past failed attempt at a similar transfer, is going to fail a similar transfer to a new, unknown wallet. But it's worth a try.

Do you think the recency of a similar large transfer could be an issue?

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That's what Google says. I haven't personally tried it.





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shirasu893 said:

I attempted a transfer of nearly $1000 in USDC(ETH) from Cashapp into my Exodus wallet. Before this, I had completed 2 successful sends to the very same wallet: (1) a modest BTC amount, and (2) a sizable USDC(ETH) sum the week before, which I then spent on peptides. This most recent attempt, however, was declined "for security reasons." Upon contacting Cashapp customer support, I was told their algorithm had concluded that permitting USDC to go to that address (my Exodus wallet) would "violate Cashapp's terms of service."

Is there any workaround for this?
Click to expand...
Push them to give you a reason. That could help everyone else here as well.

These are your assets moving into your own personal wallet. What makes that prohibited? Is it the size of the transfer? You aren't permitted to send assets you own wherever you want just because they exceed some threshold? Seriously, what kind of fuckery is this?!
 
byefatlicia said:

shirasu893 said:

I attempted a transfer of nearly $1000 in USDC(ETH) from Cashapp into my Exodus wallet. Before this, I had completed 2 successful sends to the very same wallet: (1) a modest BTC amount, and (2) a sizable USDC(ETH) sum the week before, which I then spent on peptides. This most recent attempt, however, was declined "for security reasons." Upon contacting Cashapp customer support, I was told their algorithm had concluded that permitting USDC to go to that address (my Exodus wallet) would "violate Cashapp's terms of service."

Is there any workaround for this?
Click to expand...
About 12 months back, the same thing happened to me with Cashapp. I spent what felt like forever chatting with their AI "customer service"... Eventually I told that AI to kiss my a**, and then an actual human rep warned me that my account could be suspended for speaking to their "reps" in that manner. Apparently you can verbally assault a computer now...

These days I purchase straight from exodus. My suggestion would be to try moving your crypto back into your bank and stay away from cashapp.
Click to expand...
Every time I notice someone bring this up, I repeat the same advice. Buying or swapping straight through Exodus is a bad idea because the fees are outrageous. Go with a real exchange instead, such as Kraken or Coinbase.
 
13

tcpnomad said:

shirasu893 said:

I attempted a transfer of nearly $1000 in USDC(ETH) from Cashapp into my Exodus wallet. Before this, I had completed 2 successful sends to the very same wallet: (1) a modest BTC amount, and (2) a sizable USDC(ETH) sum the week before, which I then spent on peptides. This most recent attempt, however, was declined "for security reasons." Upon contacting Cashapp customer support, I was told their algorithm had concluded that permitting USDC to go to that address (my Exodus wallet) would "violate Cashapp's terms of service."

Is there any workaround for this?
Click to expand...
Push them to give you a reason. That could help everyone else here as well.

These are your assets moving into your own personal wallet. What makes that prohibited? Is it the size of the transfer? You aren't permitted to send assets you own wherever you want just because they exceed some threshold? Seriously, what kind of fuckery is this?!
Click to expand...
From Cashapp's routine helpdesk I got handed over to their Bitcoin help desk, despite the fact that BTC wasn't part of the txn. The person I talked to at the Bitcoin helpdesk heard my explanation that the transfer was going to my own non-custodial wallet, and that is when the "violating terms of service" explanation came out. I pushed back on him, asking how it could possibly be a TOS violation to send USCD(ETH) to my own custodial wallet, and his response was along the lines of the address having been flagged. The impression he gave was that no information existed about the reason for the flag.

My assumption is this: Cashapp had previously traced the blockchain for my earlier USDC(ETH) transaction back to the peptide vendor's address, which Cashapp had already blacklisted internally. So the intermediate address, meaning my Exodus wallet, ended up suspect as well. That is the only explanation I can think of that makes any sense whatsoever.
 
shirasu893 said:


the address had been flagged. He implied that there was no information available as to why it had been flagged.

What I assumed is that Cashapp had earlier traced the blockchain for my previous USDC(ETH) transaction to the address of the peptide vendor, which had already been internally blacklisted by Cashapp. Thus, the intermediate address (my Exodus wallet) was also suspect. That's all I can come up with that makes any sense at all.

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Whoa, that's genuinely fascinating. So any address they could identify as having sent crypto to a flagged address got flagged too?! I've never come across that before. Still, it does make a certain amount of sense. I have to wonder whether other crypto platforms follow the same tracing approach. And whether some kind of federal rule is behind it. It's a little odd, though — if that were really happening, you'd expect this sort of situation to be more widespread and more widely discussed.

There's a takeaway here for everyone. The address we use to receive should not be the same one we use to send. I'm going to dig into this a little.
 
tcpnomad said:

byefatlicia said:

shirasu893 said:

I attempted a transfer of nearly $1000 in USDC(ETH) from Cashapp into my Exodus wallet. Before this, I had completed 2 successful sends to the very same wallet: (1) a modest BTC amount, and (2) a sizable USDC(ETH) sum the week before, which I then spent on peptides. This most recent attempt, however, was declined "for security reasons." Upon contacting Cashapp customer support, I was told their algorithm had concluded that permitting USDC to go to that address (my Exodus wallet) would "violate Cashapp's terms of service."

Is there any workaround for this?
Click to expand...
About 12 months back, the same thing happened to me with Cashapp. I spent what felt like forever chatting with their AI "customer service"... Eventually I told that AI to kiss my a**, and then an actual human rep warned me that my account could be suspended for speaking to their "reps" in that manner. Apparently you can verbally assault a computer now...

These days I purchase straight from exodus. My suggestion would be to try moving your crypto back into your bank and stay away from cashapp.
Click to expand...
Every time I notice someone bring this up, I repeat the same advice. Buying or swapping straight through Exodus is a bad idea because the fees are outrageous. Go with a real exchange instead, such as Kraken or Coinbase.
Click to expand...
I've noticed you mention this before. It barely costs me anything???
 
byefatlicia said:

tcpnomad said:

byefatlicia said:

shirasu893 said:

I attempted a transfer of nearly $1000 in USDC(ETH) from Cashapp into my Exodus wallet. Before this, I had completed 2 successful sends to the very same wallet: (1) a modest BTC amount, and (2) a sizable USDC(ETH) sum the week before, which I then spent on peptides. This most recent attempt, however, was declined "for security reasons." Upon contacting Cashapp customer support, I was told their algorithm had concluded that permitting USDC to go to that address (my Exodus wallet) would "violate Cashapp's terms of service."

Is there any workaround for this?
Click to expand...
About 12 months back, the same thing happened to me with Cashapp. I spent what felt like forever chatting with their AI "customer service"... Eventually I told that AI to kiss my a**, and then an actual human rep warned me that my account could be suspended for speaking to their "reps" in that manner. Apparently you can verbally assault a computer now...

These days I purchase straight from exodus. My suggestion would be to try moving your crypto back into your bank and stay away from cashapp.
Click to expand...
Every time I notice someone bring this up, I repeat the same advice. Buying or swapping straight through Exodus is a bad idea because the fees are outrageous. Go with a real exchange instead, such as Kraken or Coinbase.
Click to expand...
I've noticed you mention this before. It barely costs me anything???
Click to expand...
Of course. Compared to the sums we typically move around, it isn't a huge amount. Still, what bothers me is how far above the norm it sits for the crypto space. Put next to what's typical there, it's outrageously high.
 
tcpnomad said:


Oh wow. That's actually very interesting. So they flagged all addresses that they could find that sent crypto to an address that had been flagged?! Never heard of this before. But it makes some sense. I wonder if other crypto operations also trace things similarly. And I wonder if this is some kind of federal regulation. A bit strange because if this is true, then this kind of thing would be more common and better known.

This actually has implications for all of us. Our receive address should be different from our send address. I am going to look into this a bit.

Click to expand...
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To be clear, I have no proof for this idea. Nobody at Cashapp support actually said to me, "USDC was previously sent by you from (1) the address you attempted to fund today to (2) an address on our blacklist. Therefore you cannot fund that intermediate address a second time." It is simply the sole account of events that strikes me as remotely plausible.
 
maokai said:

For getting into crypto, Cashapp, Venmo, and Paypal ought to be treated as last resort options.

If you plan on making purchases regularly from here on out, it's better to just set yourself up with Coinbase, Kraken, or Binance.
Click to expand...
How does Coinbase usually handle on-boarding?

What are the fees and how quickly can you access transferred funds?
 
shirasu893 said:


Again, this is just a theory of mine. Customer service at Cashapp didn't tell me "You previously sent USDC from (1) the address you tried to fund today to (2) an address we've blacklisted. So we won't let you again fund that intermediate address." That's just the only explanation I can come up with that makes any kind of sense to me.

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Your theory holds up, if that's of any interest. Blockchain tracing is something exchanges (and others) do routinely, gathering up addresses that have had dealings with flagged ones. Algorithms may then score those addresses for risk, leading to flags or even reports. Federal law demands this. The framework governing it is quite elaborate — covering the extent of monitoring, the content of reports, and their timing.

So then I have to ask: by this point, how many of us have become offenders purely through association? If luck is on your side, the addresses your vendor uses when dealing with you aren't the blacklisted ones. It's hard to believe. Without realizing it, I had been trusting the vendor's OPSEC to keep me safe.

Appreciate you raising this. This side of things had never really crossed my mind.
 
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