Jaxx - Bitcoin rip-off

in bitcoin •  last year

I recently managed to get an iPhone 5 so I could get a Dash wallet on my iPhone; it will not work on an earlier iPhone.
So I installed the Jaxx wallet which is quite neat in that it can give you multiple wallets in different crypto currencies.
I already have several bitcoin wallets, but I thought I would try out the bicoin wallet on Jaxx just for fun.
Well it turned out not to be much fun. I had a paper wallet that had been gathering some bitcoin from my mining pool and I asked Jaxx to transfer the contents to the Jaxx wallet.
So the transaction went through and when I looked it had only credited the wallet with about 10% of what was in the paper wallet. Jaxx had allowed the transaction to take an 80% transaction fee.
So I had 0.10151676 BTC in my paper wallet about £222 and Jaxx only put 0.01285896 BTC £28.42 in the Jaxx wallet.

Now Jaxx pointed me to an article they had written which says they use a 3rd party to tell them how much the fee should be so it's not their fault. Haven't Jaxx heard about a duty of care to their users to check that the transaction fee is reasonable or at least give the user the choice as to whether to proceed. The Jaxx wallet just does it, no way to check the fee.

Well in my opinion the bitcoin mining community is out of control and trying to get as much as they can out of innocent people trying out this new technology. If this continues much longer they will kill the goose that lays the golden eggs and everyone will switch to other altcoins; there are plenty of them.

I have another paper wallet with over 2 BTC on it. Am I going to transfer that to a Jaxx wallet? I don't think so.

I have also noticed that the support desks in the crypto currency arena are really quite slow, if they respond at all. I am just beginning to wonder if this is the latest cowboy industry. I have been in the computer industry for over 40 years and have seen a succession of cowboy companies who think it is OK to overcharge people for poor service and alpha quality software.

For those of you involved in the crypto currency reading this may be a little hurtful. Well pay attention and clean up your act if you want to go mainstream.

At the moment the only crypto currency that appears to be trying reasonably hard is Dash.

You can find the evidence for my transaction at
https://blockchain.info/tx/dbf3d5464ac2f320a10e1dfef8239e67e502a2b33f14090f139affecd92823bd

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As you say, this isn't necessarily a scam if they laid out the details but it's definitely a total rip off, you do not need to pay such a massive fee just to have a paper wallet. In fact, I don't know who these Jaxx people are but they sound dodgy as just from what you've posted here, you should be able to set up a paper wallet no problem by yourself.

I recommend looking up tutorials next time and doing it that way rather than relying on shady third parties to store your Bitcoin. You should never trust a third party to keep your Bitcoin safe long term. I actually think a decent idea would be to put your Bitcoin on an offline laptop rather than a paper because then it's not as easy to lose as well and you've got something you can quickly connect up to if you need the coins eventually.

We've all got to be exceptionally careful of this kind of stuff sadly because cryptocurrencies are so new.

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There was no problem with the paper wallet. I needed to spend the bitcoin from the paper wallet so transferred it to a mobile wallet. My mistake was to choose Jaxx to do it. They claim that they do not benefit from the transaction fee, but I think they have a duty of care to at least give one the opportunity to cancel the transaction on reviewing the fees; only you don't get to review the transaction fee Jaxx do goes ahead and does it.

Not good enough!

Wow that is terrible. My friend lost all his litecoin mysteriously from a jaxx wallet. I would stay away from it. I recommend using coinomi wallet, it is very secure and open source.

Fuck Jaxx, they fucked me over too. God damn mooch ass bums is all they are. Their wallet isn't even fucking impressive.

Report them to the Better Business Bureau. They have an office in Ontario and they would probably go investigate.

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I reported them after reading your post.