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Hodl Hodl silently introduced AML

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Hodl Hodl silently introduced AML

I've been trading P2P on Hodl Hodl for a long time. Its main selling point has always been "no KYC/AML", and their FAQ still says so today. As of this week that no longer seems to be true.

What happened

  • Contract 1: I deposited BTC into escrow for a sell contract. After confirmation, the contract was automatically canceled with the message: "The contract was automatically canceled after the AML check." The coins came entirely from trades previously completed on Hodl Hodl itself.
  • Contract 2: I reopened the same trade using a different UTXO. After the first confirmation the contract switched to "AML review in progress", shown as a dispute, funds locked, no timeframe given. About 40 minutes later it moved to "In progress" with no explanation.

Until yesterday, contracts went straight from confirmation to the payment step. Screenshots attached (counterparty and amounts redacted).

What support said

I emailed them asking when this was introduced, what is screened, who does it, and whether my account is flagged. The reply called it a "standard AML compliance check" applied automatically to all transactions, said it doesn't necessarily indicate wrongdoing, and said they can't share any further details. None of my questions were answered.

The problem

  • No public announcement
  • The current Terms of Service don't mention automated AML screening of escrow deposits
  • The FAQ still advertises "no KYC/AML"
  • No information on who does the screening (in-house or a chain analysis provider), what criteria are used, or how long reviews take
  • Your coins can sit locked in escrow for an unknown time, or the contract gets canceled, with zero explanation

I'm not asking them to avoid complying with whatever rules they think apply to them. I'm asking for transparency. If a platform built its reputation on being a no-KYC/AML P2P marketplace changes that, users deserve to be told clearly and publicly, before their coins get stuck.

Has anyone else run into this?

submitted by /u/dende93
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