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Bitcoin Private (BTCP) Submits Legal Message to HitBTC After Being Delisted from the Exchange
Bitcoin Private (BTCP) is one of the most popular privacy-centric cryptocurrencies in the space. The team behind it has sent a legal letter to the cryptocurrency exchange HitBTC after being delisted from the trading platform.
The information was released by Bitcoin Private in an announcement made on Saturday.
BTCP Delisted From HitBTC
In the letter sent to the crypto exchange HitBTC; the Bitcoin private team explains that they have paid a listing fee of $500,000 to be paid in Bitcoin. However, in December 2018, an in-depth analysis performed by the blockchain analytical firm CoinMetrics showed that there were approximately 2 million BTCP coins that were covertly mined.
In order to solve this issue, the BTCP community accepted to perform a coin burn and remove the coins from circulation. Users and exchanges had to move their coins to a new wallet before block 480,000. If they did not perform this action, the tokens would be immediately removed from circulation.
Due to the fact that HitBTC did not perform the requested action to safeguard the funds it had and the funds from its users, they lost 59,920 BTCP holdings. Due to this situation, the exchange demanded BTCP to compensate the company for losing these coins.
They explain that the reason they were not able to protect their coins is the fault of BTCP and its team. After this, the exchange delisted BTCP from its platform.
According to HitBTC, they reached BTCP developers out to solve this situation and to move BTCP coins from a wallet that would not be affected. However, they say that the team behind this virtual currency couldn’t provide a reliable and secure instrument to move the funds before the hard fork. This is why some of their funds have been already burnt.
According to Bitcoin Private, the decision that HitBTC took is questionable and unjustifiable.
The BTCP team is currently requesting HitBTC to release a public statement explaining to the public and the users of the platform the whole situation experienced by the exchange and why they are delisting BTCP from their exchange.
BTCP was created back in 2018 after a hard fork between Bitcoin (BTC) and ZClassic (ZCL). The main intention was to add privacy features to Bitcoin due to the lack of fungibility that the virtual currency has.
At the time of writing, BCP is the 198th largest digital asset in the market with a price of $0.717. It also has a market capitalization of $14.8 million. Back in 2018, BTCP received support from John McAfee.
HitBTC Says It Didn't Freeze Accounts for Proof of Key Event as Exchange's Marketing Team Gives Clarity
The cryptocurrency exchange HitBTC has been in the media after being accused of freezing users’ accounts for the ongoing Proof of Keys event. The cryptocurrency investor Trace Mayer, for example, publicly accused the company of suspending withdrawals.
HitBTC told BitcoinExchangeGuide in an email on January 3rd that these allegations regarding frozen accounts are not real.
Peter Swen, part of the HitBTC Marketing Team, explained that the issue was not related to the “Proof of Key” flashmob. Apparently, the withdrawal problems that some of the platform’s users were experiencing were triggered by a standard KYC/AML procedure.
The company explains that withdrawals can always be paused if security measures are triggered. This tends to happen just for safety reasons and it is a standard procedure. According to HitBTC, the intention is to protect customers and provide them with the best security.
Apparently, some of these withdrawal freezings happened due to the international KYC and AML measures that the exchange adopted. These rules apply at all times and cannot be evaded.
About it, Mr. Swen told BitcoinExchangeGuide:
“The temporary, safety-related withdrawal freezings are a direct consequence of our international KYC and AML measures. These rules exist and apply to us and everybody, 24 hours a day, 365 days of the year. Therefore, we do not turn off any security tools or checks, ever.”
These rules are specifically in place to protect customers and trust HitBTC for processing transactions and trading. In the email, Swen explains that the security measures are in line with their Anti Illegal Activity (AIA) policy which the exchange published here.
HitBTC is the 18th largest cryptocurrency exchange in terms of trading volume. In the last 24 hours, the platform processed $179 million in trades. The most popular trading pairs at the exchange are BTC/USDT, EOS/USDT and XRP/USDT, accounting for almost 50% of the whole trading volume at the exchange.
John McAfee's HitBTC Warning Comes to Light as Exchange Freezes User Accounts Before Proof of Keys Event
HitBTC Freezes Customer Accounts a Day Before Scheduled Proof of Keys Event
In a highly unethical and suspicious move, it has recently come to light that cryptocurrency exchange HitBTC has been freezing withdrawals for many of its customer accounts just hours before the launch of the much awaited annual proof of keys event.
To add fuel to the fire, this was one of the top crypto exchanges facing scrutiny for its actions from of of the most vocal crypto asset advocates, John McAfee, who called on investors and traders to boycott the trading platform in the middle of 2018. And given the recent news of what HitBTC has done to its users, he had this comment to add into the mix:
I warned everyonw more than a dozen times. Don't sign up. Don't use it. Withdtaw your funds. I was trashed for calling out HitBT as a corrupt cimpany. Tough shit. You had six months warning from me to withdraw your funds. Do not ask me to help you now.
Elaborating further on the matter, it is worth noting that a couple of days back (on the 31st of December, 2018), the trading platform suspended the accounts of one of its daily users (by the name of PEDXS). According to a post on Reddit, PEDXS claims that he had duly completed all of the KYC tests that were required of him. However, despite this, HitBTC repeatedly denied his request to withdraw his altcoin holdings from his account.
In relation to the matter, PEDXS was quoted as saying:
“After months of sending 40 plus emails, HitBTC finally un-froze my account,” PEDXS said in his complaint. “I immediately withdrew most of my funds but left a small amount to day trade. I did that because HITBTC promised that “No further automated restrictions will be applied.”
More on the Matter
Much like the above stated issue, over the course of the past 48 hours, many other HitBTC customers too have come forth and shared similar experiences. For example, another user who goes by the alias ‘LOOKATMYIQ’, also took to Reddit recently when he too faced ‘withdrawal rejections’ from the exchange.
“Submitted all my documents/evidence for KYC days ago and now support [is] going cold on me. Have I been scammed? I have been trading crypto for years on all kind of exchanges and never had my funds locked without warning like this. Support [was] fast to respond when asking for additional (over the top) information but since I have given them everything they have asked for they’ve just disappeared on me.”
What Should We Make of All This?
According to many market analysts and crypto experts, these intentional roadblocks could be part of HitBTC’s plans to stop massive coin withdrawals during the upcoming Proof of Keys event.
For those not aware about the aforementioned Proof of Keys event, it is essentially a solidarity movement that was started by crypto investor Trace Mayer— in an effort to get crypto traders to withdraw their funds from third party exchange services. The aim of this entire exercise is to “hold third-party crypto platforms” accountable by testing them for their solvency.
In closing, it is worth noting that HitBTC deems to be having some monetary issues of its own right now. In this regard, Harsh Agarwal, a reputed crypto enthusiast, recently posted the following statement online:
“HitBTC was something that began as a promising crypto exchange and got lucky with the big crypto wave in 2016 and 2017, but it [definitely] failed to keep up with the innovation and user demands. They are barely surviving, and this can have a major impact on users who are using HitBTC as their crypto exchange.”
What do you guys think? Was John McAfee right about HitBTC crypto exchange all along? Also, make sure you study up on the movement that is the Proof of Keys event and start learning how people in the crypto community are striving to make a difference for investors and traders, and ultimately users.
HitBTC Exchange Experiences Technical Difficulties, Hardware Fault Causes Offline Status
HitBTC Goes OFFline Due To Hardware Fault
HitBTC, a major crypto exchange went down a short while ago due to a hardware fault. This is according to a post they made on Twitter. The exchange said that it needed at most two hours to fix the issue. However, they said that all the funds of traders were safe.
It Is Causing Some Jitters
Despite HitBTC promising that all funds were safe, not all users of the exchange felt reassured. Some of the clients have been having a field day posting hateful comments under the tweet. The main reason for most of the offensive tweets, appear to be due to a recent feud between John McAfee and HitBTC. McAfee is often called the king of crypto. However, other comments seem to be due to accounts being frozen or problems trying to withdraw funds.
The John McAfee Feud
John McAfee has been feuding with HitBTC for a while now. In a recent tweet, he said that he would take legal action against the company. The feud began a few weeks ago in which John expressed outrage at how overbearing centralized exchanges were.
In the post, he spoke about HitBTC because the platform restricted the trade of the Docademic MCT tokens. McAfee is a major promoter of the MCT token, which wants to provide free basic healthcare to people globally. McAfee said that restricting MCT tokens had increased the suffering of millions of people.
He then called on his followers to boycott HitBTC. He, later on, fired another shot at them, claiming that their lack of regard for MCT was out of line with the crypto community. McAfee added that he would be their worst enemy until the issue had been resolved.
HitBTC did respond to the comments. However, they did not offer an argument for his claims. Instead, they backhandedly wished him well. This was after a recent attempt on his life, which left him in the hospital for three days. They did later issue a full response.
Technical Faults Are Not New
Technical issues are not new in the world of crypto exchanges. Sometimes, the downtime is usually scheduled, like happened with the binance exchange. However, it does end up lasting longer than expected in some cases.
However, the most common reason for unscheduled downtime is often a hacker attack on the exchange. In the past few months, cases of hackers stealing millions of dollars in crypto have been reported. One of the biggest heists in recent months was at Bithumb, a South Korean exchange. At that hack, $31 million was lost. However, they managed to recover about half of it.
Earlier in the year, one of the biggest hacks in the history of crypto took place. The Coincheck exchange, which is based in Japan, lost coins worth over $550 million.
HitBTC is one of the largest exchanges today. It launched in 2013, but its location and ownership are still a bit murky. It used to be active in China until the crackdown of 2017. The exchange was forced to shift to Hong Kong and turn its attention to the global market.