I’ve seen this app advertised on /r/Monero and other altcoin subreddits. I wanted to share this warning.
AnchorUSD is a new, relatively unknown robinhood-like app for buying crypto/stocks. I tried to withdraw nano from it today. Although it took the nano balance out from the app, I did not receive the funds in my nano wallet. This screenshot shows the popup when I click on the "Sent Nano" transaction.
Now, I've been using this app for about 3 weeks. Not having made any cash or coin withdrawls since then, I did not think anything was suspicious. The app looked very professional, its reviews were good, and the relevant (albeit very small, especially at the time) discussion on reddit was mostly positive. However, I have found some major red flags and evidence that calls the app's legitimacy into question.
– There is extremely little information about AnchorUSD as a company online. crunchbase lists 2 people as running the company, an oddly small amount. The site gives impressive career histories for both people, listing one as previously working for Stripe and Jane Street Capital, and the other as working for Facebook. You can read their full descriptions for yourself. Now, I looked these people up, and I could find no LinkedIn–very unusual for individuals accomplished in the tech and finance field. In fact, the only trace I could find of them was this barren twitter account created in March 2019.
– Impressively high interest rates: 8% for USD accounts and about 4-5% for crypto accounts. While not proof of fraudulence, definitely surprising. But wait, not just 8% interest, but FDIC insured? Well, I can't find any proof that they are actually FDIC insured other than that solitary tweet by AnchorUSD themselves
– As mentioned above, what appears to be a tiny company allowing such quick verification and even allowing me to instantly purchase crypto without waiting for funds to settle. Quite impressive that we're essentially allowed to trade on margin
– r/AnchorUSD. Take a look at this subreddit: created on July 12, 2020, only moderator is AnchorUSD. Posting restricted. Interesting how that avenue of discussion was conveniently stifled ahead of time.
– I have found many post/comments on reddit and twitter complaining about being unable to withdraw funds/crypto, I will try to compile some below. Usually the response from redditors or their twitter account is something like "we're a small company, so we just haven't caught up to support tickets yet." I will say that while it appears a small amount of users have received their funds/crypto after badgering support or weeks of waiting, this isn't proof that AnchorUSD isn't running a scheme. I would at least be extremely wary of them. At the very least, delays in withdrawing coins/funds may be an issue
Other posts I've found with similar concerns:
A reddit search, look thru recent app store reviews, or look thru twitter replies will show a lot of similar complaints. Let the user beware
I'd love a response /u/AnchorUSD. If you are legitimate, then the lack of transparency is unacceptable. Many others and I have a lot of money in your accounts right now.
EDIT: Found this post that is further exposing AnchorUSD. Extremely odd how they appear to hold coins in Kraken and how the appear to manually do transfers. Just read the thread, it's probably the most important link here np.reddit.com/r/CryptoCurrency/comments/kkknlq/warning_to_any_newcomers_not_all_exchanges_have/