LocalBitcoins controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2025
Penalty for customer-due-diligence deficiencies
The Finnish Financial Supervisory Authority imposed a €500,000 penalty over deficiencies in customer due diligence and identity verification during LocalBitcoins' final operating years.
2019
User-account Bitcoin theft
Attackers stole Bitcoin worth approximately US$28,200 from user accounts. LocalBitcoins said it identified and resolved the incident and emphasized two-factor authentication.
2018
Arrests involving LocalBitcoins users
Users of the service were again arrested in cases involving money laundering and related offenses.
2016
Further arrests involving platform users
Additional arrests of LocalBitcoins users for money laundering and related crimes were reported, adding to scrutiny of peer-to-peer cryptocurrency trading.
2014
Arrests involving LocalBitcoins users
People who used LocalBitcoins were arrested in connection with money laundering and related offenses. The incidents highlighted the compliance and law-enforcement risks associated with an open peer-to-peer trading marketplace.