BTCPromo is an unknown and unverified Bitcoin exchange that claims to exchange Bitcoins for Paypal payments, allowing users to potentially turn their Bitcoins into dollars stored on the Paypal network.
The problem is, several customers are alleging that BTCPromo is keeping their Bitcoin and without paying for it.
There are a few things that should tip off anyone savvy enough to be playing in the Bitcoin game. First, any Bitcoin to Paypal site is already suspicious. Paypal hasn't supported bitcoin in the past and if the “exchange” decides to issue a chargeback, there is little to nothing innocent bitcoiners can do about it. Second, the alleged exchange's domain name is registered in Queensland, Australia but the title is in Greek.
There is also a donation button next to the Adobe logo on the site. The logo is a strange enough addition but a donation address for a site that supposedly offers a service for a fee is another major red flag.
The allegation started on the Bitcointalk Internet forum and Bitcoin's subreddit. One user complained about sending bitcoin into the service and getting a few transactions through before BTCPromo allegedly stopped sending payment.
Another user claims to have never gotten anything in return for his Bitcoin. The company allegedly tricked him into sending several transactions of Bitcoin by blaming technical issues, the user claims to have eventually sent BTCPromo 5 BTC, totaling over USD $3,720 at current prices.
It is important to note that these allegations remain just that at press time - allegations. However, representatives from BTCPromo have posted on Bitcointalk before, so they are almost assuredly aware of the claims against them, and have yet to respond publicly. We have reached out to BTCPromo and will update you if and when they respond. It should also be noted that Paypal to BTC and BTC to Paypal sites in general are not very reputable, despite the eBay CEO's recent comments, the online fiat exchange system remains unfriendly to cryptocurrency based companies.
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