HitBTC Crypto Exchange in Trouble after a Reddit User Threatens Legal Action
Crypto exchanges have played an important role in linking stakeholders within the industry. The firms behind these projects focused on building ecosystems that enable P2P interactions for investors and traders to exchange crypto coins. However, their growth has not been as smooth as one would imagine given the volatile nature of crypto markets. HitBTC, a leading crypto exchange was recently backlashed by one reddit user who seems to be at cross paths with the exchange. This is not new as many crypto users have in the past spoken up against poor services.
HitBTC at Fault?
Today, the internet has made it simple for feedback and criticisms to be aired despite the protocols involved. This effect is felt no less within the crypto industry given its very tech savvy crowd. Platforms like Facebook and Twitter are being used to manage blockchain projects through announcements, feedback and general customer support.
The HitBTC case is that of a double-edged sword whereby social media is the firm’s doing and undoing at the same time. This crypto exchange leverages the internet to gain exposure but has been on the receiving end especially in crypto oriented platforms such as reddit. Recently, one reddit user went the mile of dedicating a subreddit to air grievances as a result of dealing with HitBTC in the past.
Vandenhof is the username of the reddit account that started the HitBTC Victims subreddit. This may not be the most popular section of crypto subreddits but has attracted attention from a couple of dissatisfied HitBTC clients. The issues that seem to come up evidently include hurdles as a result of unclear KYC practices. According to Vandenhof, other issues include being restricted to withdraw and account blocking under unclear circumstances. This poses the question on whether HitBTC is worth the hustle if these allegations are anything to go by.
Based on the information provided, Vandenhof has been a victim of HitBTC malpractice for the past two years. One then wonders why stick to the same crypto exchange while there is a variety to choose from? From the arguments, Vandenhof seems to have been denied access to his funds back in 2017 and has since taken up the issue with HitBTC but to no avail.
The most recent development is quite an interesting one, Vandenhof posted on the possibility of going the legal way to settle the misunderstanding with HitBTC. One of the key areas pointed out is the AML/KYC process by the firm which according to Vandenhof and other users is not up to market standards. However, this move is yet to be advised given its vagueness in research terms.
In summary, the move by Vandenhof is currently a one-man crusade paving way for more grievances to be aired against crypto exchanges. The subreddit revealed that HitBTC is yet to achieve the desired level of efficiency which is generally the case in this market. Its impact will probably be felt across the industry as more crypto users find effective channels to call out digital exchanges that are dishonest with client accounts or operate in dubious ways.