This report describes a user's complaint against the crypto exchange Exolix.com, which blocked the client's funds for an extended period and subsequently began demanding the completion of a KYC procedure, which raises serious concerns regarding personal data protection.

According to user Judavd, two of his transactions totaling 500 AVAX have been blocked on the Exolix platform for four months now. Initially, the exchange's support stated that the funds had been frozen by their liquidity provider (LP). The user provided all the requested proof of the origin of the funds, but support stopped giving constructive answers, limiting itself to automatic messages stating that the case had been forwarded to the technical team. After five months of waiting, Exolix finally refused to unlock the funds without passing an enhanced KYC procedure. The user was required to provide a photo holding their ID, a separate photo of the document, a video recording with the document, and a written explanation of the source of the funds.

Such demands appear highly dubious. The exchange positions itself as a no-KYC service; however, under the pretext of problems with the liquidity provider, it is forcing the user to reveal sensitive biometric and personal data. Transmitting video and photo IDs, as well as bank statements, to an unreliable third party without a clear legal framework and data protection guarantees is a direct violation of data minimization and privacy principles. If the data is compromised, the user will be exposed to the risk of identity theft, and Exolix provides no guarantees regarding the secure storage of this information.

The situation was highlighted on the Bitcointalk forum and led to the degradation of the platform's reputation. According to user Coyster, he had previously encountered a similar incident where Exolix sent a client coins stolen in a phishing attack, resulting in their confiscation by another platform. He also emphasized that when using custodial exchanges, users always run the risk of not getting their funds back. According to user RGBTC, freezing funds without explaining the real reasons on the part of the liquidity provider is a suspicious practice, and defenders of the platform are ignoring the core of the problem. According to user albon, the inaction and ignoring of complaints by the official Exolix representative on the forum indicate that the platform has become high-risk for users. According to user JeromeTash, the exchange already had a history of similar complaints, and using services with KYC/AML policies often leads to account freezes.

User Judavd also shared a link to Reddit with a similar warning about Exolix's activities, where another client describes how the platform delayed the unlocking of funds for six weeks, constantly asking new questions even after the KYC procedure was completed.

To date, the user's funds remain blocked.