ChangeNOW, as a cryptocurrency exchange platform with a strong focus on security, would like to use this opportunity to explain our operational procedures and how we adhere to legal and security standards.

Addressing concerns raised by users, including a case highlighted by @EB7 on Twitter, we affirm our steadfast commitment to upholding legality, security, and trust within the cryptocurrency ecosystem.

1) Identification and Prevention of Illicit Transactions

Cryptocurrency markets, while fostering innovation and financial accessibility, are susceptible to exploitation by malicious actors engaging in illicit activities such as money laundering, terrorist financing, and fraud.

To mitigate such risks, ChangeNOW employs robust transaction monitoring mechanisms rooted in industry best practices and regulatory directives. Transactions exhibiting characteristics indicative of potential illegality are subject to heightened scrutiny.

This so we can safeguard the integrity of our platform and the broader financial ecosystem.

This is so we can protect our community from hacks and frauds.

And this is so we can help make the crypto world a safe space.

2) Contribution to Security Protocols and Fraud Mitigation

If ChangeNOW AML mechanisms detect a suspicious transaction, ChangeNOW assumes an active role in combating fraudulent activities that affect the cryptocurrency landscape.

This proactive stance serves to bolster confidence among our user base, fortify the integrity of transactions facilitated through our platform, and collectively fortify the resilience of the cryptocurrency sector against fraud and malicious activity.

3) Firm Adherence to Compliance Policies

ChangeNOW maintains an unwavering commitment to compliance with all applicable legal frameworks and regulatory mandates governing financial transactions, including but not limited to anti-money laundering (AML) and know-your-customer (KYC) regulations when the AML mechanisms are triggered.

Our operational ethos is predicated on strict adherence to established policies that preclude facilitation of any transactions contravening legal statutes or regulatory imperatives.

4) Adjudication of Specific Cases

In the instance referenced by @EB7 on Twitter, wherein a transaction was halted, this is what has happened:

1. It was stopped when detected by our AML mechanisms as suspicious
2. Our compliance team conducted a meticulous examination in accordance with predefined protocols.
3. Our support team maintained a close interaction with the user asking for the necessary documentation - as it is our policy to review each and all cases with the most attention to details.
4. Once the necessary documentation was provided by the user, our team reviewed it and issued the refund.
5. The refund was issued in a timely manner, any delays that may arise in such situations can be the result of wrong documentation presented by the user.

Here are some other cases showcasing how ChangeNOW combatted illegal activity and also returned funds.

1. Sim Swap Hack

• Victim's crypto exchange account was hacked
• ChangeNOW in teamwork with law enforcement agencies was able to recover the funds
• $430K in BTC returned

2. Algorand Community Hacks

• Algorand community was hacked ($13 million stolen)
• ChangeNOW halted $1.5M in suspicious transactions

3. Compound Case

• ChangeNOW risk management system caught a suspicious 45,505 COMP exchange
• $15M returned

5) Recourse Mechanisms for Users

Recognizing the potential inconvenience associated with halted transactions, ChangeNOW extends avenues for users to seek recourse and clarification.

To make the process fast and painless, please

1. Contact our dedicated support team
2. Contact our compliance team at compliance@changenow.io
3. Provide all the necessary documentation
4. Be ready to confirm your address for the refund when requested

Conclusion

In summation, ChangeNOW underscores its unwavering commitment to legal compliance, security, and trust as foundational tenets underpinning our operational ethos. Collaboratively, with our esteemed user base, we persist in fostering an environment characterized by integrity, transparency, and adherence to regulatory imperatives, thereby engendering sustained confidence in the cryptocurrency ecosystem.

For further inquiries or assistance, we encourage users to avail themselves of our support services.

Respectfully,

The ChangeNOW Compliance Teams