HitBTC Under Fire Due to Disabled Withdrawals
One of the top 10 crypto exchanges with fees HitBTC is under fire today as its users complain that the company has disabled withdrawals without an official explanation. Moreover, as the exchange remains silent, new accusations are starting to appear.
For example, some of the accusations now center around the annual Proof of Keys event, set to happen tomorrow, where participants withdraw their funds from exchanges to prove ownership of them.
Trace Mayer, the person behind the Proof of Keys event, wrote on Twitter:
Saw this coming. Similar to when bitcoin hit 19k and coinbase crashed. I can see exchanges going down for maintenance during proof of keys …"maintenance " pic.twitter.com/7HCqvmdL5s
— Colorado Crypto-naut (@303nate) January 2, 2019
There is no concrete evidence that the current issue is connected to Proof of Keys, however: “Saying this is happening just before #ProofOfKeys event makes for a nice headline, but in reality @hitbtc has been behind on withdrawals and indiscriminately freezing accounts for many months now. But sure, if the narrative finally gets people upset enough, great!” writes crypto trader and Twitter influencer The Crypto Dog.
HitBTC does this as part of their common business practices.
If you try to withdraw an amount over X, they freeze your account until you KYC yourself.
They also do this if you use VPNs.
— Brad Mills [Jan/3🔑] (@bradmillscan) January 2, 2019
In either case, the issue surfaced when a Reddit user, under the account name u/pedxs, took to the HitBTC subreddit to complain about being unable to move their funds. The user’s account had reportedly been banned for a time half a year ago (for an undisclosed reason), and the exchange promised them that “no further automated restrictions will be applied.” However, u/pedxs now found themselves unable to withdraw the rest over 10 days ago, adding, “So far I have tried contacting them but only received automated responses. Communication has ceased for several days now, so I decided to post a warning on Reddit.”
Meanwhile, the exchange remains silent on the issue, only saying that "All requests are being processed by our Security dept."
All requests are being processed by our Security dept. in queue order. Kindly wait.
— HitBTC (@hitbtc) January 2, 2019
Cryptonews.com has also reached out for comment, and we will update this article accordingly.
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