1) MtGox had a bug last year in their multi-currency code, and Bitcoins showed up as $1 million per coin for a brief period of time. XZ exploited this bug and managed to sell 0.008 Bitcoin for $11,000.
The drama is on this thread:
https://bitcointalk.org/index.php?topic=33197.0;all2) The proceeds of the sale were withdrawn to XZ's Dwolla, even though Dwolla's TOS does not permit non-USA accounts.
3) XZ created multiple accounts on CampBX and funneled money in to those accounts. This is against our TOS.
When the situation came to light, Mark Karpeles brought the hammer down hard and XZ's withdrawals from MtGox were recalled. MtGox reported the issue to Dwolla, and Dwolla shutdown XZ's account. Both companies stopped replying to XZ's messages completely.
Keyur @ Camp BX, are you telling us the truth here?
In this post from 2011-08-01 18:14:25:
https://bitcointalk.org/index.php?topic=33197.0;all#msg418381Mark Karpeles writes that:
"We won't lock the account, as nothing was lost."
"Anyway in this case Xiong Zhuang told us exactly how to get the funds back (cancelling the LR withdraw, thru crediting $2000 to his account, solving the negative balance and setting everything right). There is nothing else for us to do here."
This shows that Xiong Zhuang balances with MtGox where clear and approved by MtGox's owner after the mess with the bug.
Keyur @ Camp BX, would you care to comment?
Are you trying to make it appear that the fund were stolen from MtGox, where in fact they where not?
That is all completely separate from the question of Xiong Zhuang identity document being real or not. No matter what great KYC teams you have, you can not completely prove that a document is fake - the only entity who can definitively judge that a passport is forged is the government that issued it. The only thing your KYC team can is suspect that a document is forged and not accept it (same as if the person didn't submit any document). And you can't refuse to return funds based on pure suspicion. If the person can not sufficiently prove his identity to your satisfaction, the only thing you can do is to refuse doing business with the individual, which means to return the funds to the account they came from (refuse to exchange).
Remember: anyone is innocent until proven guilty. At least in the civilized world.