An incident of fraud with my bank and localbitcoins. Outcome overall positive for me and good indicator of growing legitimacy of bitcoin.

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a little anecdote that gave me a warm fuzzy for bitcoin again. I thought I would share here..

I have been using localbitcoins.com for a couple of months to sell my bitcoins when i need the cash. Yesterday my bank in the UK froze my account and requested I contact them. I visited the bank and was asked for identification and confirmation of my address. I was then told that a transaction to my account was being invesigated as the account it came from was reportedly compromised. They questioned me about this transaction and wanted further information about it.

This was a local bitcoins transaction completed by online bank transfer. At first I was a bit cautious about revealing that it was for a bitcoin trade as I have read on reddit about someone who had their Barlays account closed and the funds seized for using localbitcoins. I explained that the transaction was for digital goods and conducted through a third party site. The bank asked me for further evidence of this transaction.

I returned to the bank this morning with the printed summary from the localbitcoins transaction. Whoever was investigating this transaction was considering it fraud they where communicating with the assitant at the branch by telephone and requested my documents to be faxed to them.

While this faxing and telephoning was happening, the assistant at the bank got chatting about bitcoin and informed me that he had bought some for $100 then sold again at $650 and was considering buying again. We had a good chat about the benefits and risks of bitcoin and I was suprised that this employee of the bank had such a positive few of bitcoin.

Having reviewed my documentation and evidence from localbitcoisn the bank was satisfied that I have not been involved as a conspirator in this fraud. I was told that the buyer from localbitcoins had reported his online banking account compromised and it is possible that he is the one commiting fraud. I was reassured that this was not being investigated because it was bitcoin related and that most likely the buyer will be investigated for attempting to defraud the bank. I asked if there was anything i could do in the future, half expecting them to want me to stop trading on localbitcoin. I was asked to keep an eye on my account and be careful using localbitcoins.

I came away from this with a sense of a growing acceptance of bitcoin in mainstream financial institutions. Reaffirming my hodl as much as possible and only sell for food and bills attitude.

submitted by k3t3r
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