the funds sent will send to the crypto exchange
Welcome to Bitcointalk and nice to see you finally joining this conversation.
Can you please tell us what third party exchanges are you using, and do you use one or more accounts with them?
he knew that his funds were high risk / dirty
He said coins are coming from Chipmixer and it's not so hard to prove that.
I don't know how you expect him to show you that he used that mixer, and I don't think this should be done.
he understood that they would be frozen by the exchange and that verification would be required
So what happens when he send you his kyc identification, and you have totally different kyc detail for your account in third party exchange?
It doesn't make any sense that sending any documents would unfreeze your account and coins, if names from documents don't match.
The user wrote that we are cheating someone with Western Union transfers and with PayPal, but this is a lie. No one knows where he got this nonsense from and he did not provide any evidence. You all just believed him and did not check.
It's bot like I trust him or anyone else blindly, but something obviously changed quickly and you suddenly changed your decision.
If it was not because of his claims, can you explain what happened that you first refunded your customer 90% and later full lamount?
What do you think would be the right thing to do in this situation?
You can use other exchanges that don't have such strict rules, maybe use decentralize exchanges, or ask customers to first give you address to check if it is high risk or not.
After that you can decide if you want to accept his coins or not.
We have decided to refund 10% to the user and have already done so. We hope it will help stop the conflict.
Good decision, but you need to make some changes in your website, so it things like this won't happen in future.