Quote from: ginbank on November 23, 2013, 10:56:58 AM

LocalBitcoins.com - Unfair dispute handling
Do admins support fraud? Is there a bias towards sellers?

Short version:

I bought 13 BTC for $7367.23 AUD via advertised payment method "National bank transfer".
The seller received the full payment in his bank account the next day.
The seller acknowledged that the payment was received.
The seller did not release the 13 BTC from escrow.
The seller opened a dispute instead.
Localbitcoins admins adjusted the BTC amount in escrow from 13 BTC, to ~12.7 BTC, effectively changing the terms of a fixed deal.
Localbitcoins.com admin stated in an email to me that they have no doubt that the money was received by the seller.
My bank has confirmed to the sellers bank that the bank transfer was legitimate after I called my bank.
Localbitcoins.com have not released my 13 BTC from escrow. The seller has not released my BTC from escrow.
Localbitcoins.com staff stated that they did not release the BTC from escrow, because I posted the case on reddit.
As of now, my BTC have not been released from escrow.

Longer version:

LocalBitcoins.com - Do admins support fraud? Is there a bias towards sellers?

Nov 18 - I bought 13 BTC for $7367.23 AUD from the seller, the payment method he requested was "National bank transfer (Australia)"
I sent the money from my St. George bank account to his Westpac bank account in two payments (due to a daily limit, I had to send $5000.00 immediately (afternoon Australian time) and $2367.23 after midnight, I was not aware of this limit in advance, I kept the seller updated via the message system, he received the funds the next day without delay.).

The BTC price went up a lot (check the charts between Nov 18 - 20).

The seller requested that I cancel the trade, even after I told him the money has already been sent.

I sent my ID documents to the seller as well as the banking receipts 1 and 2 and offered to call him. He did not provide his phone number.

The seller made threats and accusations towards me, partially in broken German language, after he saw my German ID.

The seller called me a scammer and a man

The seller claimed his account was hacked.

The seller announced that he will return the money once it is in his account.

Nov 19 - The seller confirmed via the messaging system that he received the money in his bank account (both transfers) while claiming that his localbitcoins.com account was hacked.

The seller did not release the BTC from escrow, instead opened a dispute.

I uploaded several other ID documents as well as bank statement and transaction receipts via the dispute form to localbitcoins staff. Including credit cards from my St. George bank account, government IDs and more.

I had conversations with localbitcoins admins on IRC and one staff suggested I "ask forums what the community thinks".

Localbitcoins admins asked me for my bank account number so that the seller can return my money and cancel the trade. By doing this they supported his goal not to honor this trade and sell his BTC for much more.

I stated that I would like to receive the 13 BTC as per the trade.

Nov 20 - My bank confirmed that the money was sent out, I can also see it via online banking.

Localbitcoins admins change the BTC amount in escrow from 13 BTC to ~12.7 BTC - effectively changing the terms of a trade that was fixed, this was their solution to the sellers dispute request, they called it "fair".

I disagree with changing the terms of a trade that was fixed previously and fully paid for by myself.

There was an incident at my residential address.

Nov 21 - I post the story on reddit to get feedback from the community as suggested by localbitcoins staff, to protect myself (because an unknown man came to my house the day before), and to warn other people about the slow & unfair dispute resolution taking place on localbitcoins.com

The seller begs me to remove the post because it damages his reputation.

Reddit removed the post.

The seller asked localbitcoins staff to give me what I want and to release my BTC from escrow.

Localbitcoins staff state that because I posted the story on reddit, they can not release the escrow now.

Nov 22 - Localbitcoins admins write to me that "Regarding to the money transaction, we have no doubt that it have been successfully conducted and credited to the seller's account".

Yet localbitcoins admins do not change the escrow amount back to 13 BTC, neither do they release the escrow to me.

My bank confirmed that they have informed the recipients bank about the transfers being completely legitimate.

As of now I still did not receive any of my BTC. The seller is not releasing the escrow, localbitcoins admins are not releasing the escrow.

Localbitcoins admin requests that I send them a photo of myself holding a utility bill.

Seller alleges that he spoke to police in Australia and that they told him I have a "history".

I provide localbitcoins admins with a photo of myself holding a utility bill next to my face.

I provide localbitcoins admins with a police clearance certificate from the Australian Federal Police as well as employment reference letters.

Nov 23 - I still did not receive any of my BTC.

I have had a couple of very stressful days and sleepless nights.

By now the entire message history, conversations and sequence of events would be too much to read for anybody, however I have everything saved and can back up every single statement I am making. There was more to the entire story, including a threat to my physical safety, when a stranger (male) trespassed on my property on Nov 20, 2 days into the dispute, observing my home, walking around my house, in my garden, waiting for me to get back home. I saw him, concerned neighbors informed me about this as well. - The ID I provided to the seller included my home address.

My original reddit post was deleted, there is another one here.

Yes LBC supports scammers to steal your bitcoins. One day a scammer tried to trick me an instead of 18,000 he just send 18.000 XRP. He started a dispute and localbitcoins asked me to release the bitcoins for 18 thousand XRP but I only received 18 XRP.

Another time I lost 3,000 USD because of this kind of scam. I contacted the support, but after 1 day they replied and said sorry the user already withdrawal the bitcoins. Hahahah

Then I reached the trading limit and my account got frozen, since then it keep frozen 1 year. Once I verify they freeze right away and ask my to verify again.

Localbitcoin.com is a super evil scamming company, better to stay away of it.