HitBTC Allegedly Holding User's Funds Hostage Despite Submission of Proof of ID

  • One Redditor claims HitBTC is holding his funds hostage, despite having documents necessary for KYC/AML checks.
  • Users on social media are accusing it of selective scamming.
  • Searching for complaints against the exchange leads to a plethora of results.

HitBTC, a controversial cryptocurrency exchange, is once again under fire as one Redditor claims it’s holdings his funds hostage while demanding he verifies his social media accounts, even after proving information regarding his identity.

According to Reddit user Allomancer_Jak, the cryptocurrency exchange is currently holding his funds hostage, even though he attempted to verify his identity with the exchange by sending a photo of himself and his passport in front of an email from HitBTC’s security team.

When this wasn’t good enough for the exchange, the Redditor added, he included proof of his residency and his bank statement in the documents sent to the cryptocurrency exchange, but to no avail.

In its most recent demands, the exchange is asking the user to log in to the platform without using a virtual private network (VPN) – which may allow it to record where he is logging in from. It further asked him to provide information on the origin of deposited funds. The message HitBTC send the user reads:

For your convenience, the origin of funds report may be presented in a free form as a chain of events in chronological order, every step validated with blockchain explorer data, screenshots, and data used on other crypto infrastructure services, so that we would be able to contact them for verification, if needed.


It added that the user should send over links of his social media accounts, presumably to verify he has an online presence.

In addition, kindly update us with the data regarding your social networks presence, i.e. the links to your profile in major social networks.


These demands came after the user sent over Coinbase transaction records that he purchased his BTC with fiat currency on the platform. Tracing the path of his funds through the blockchain could be extremely hard or nearly impossible.

As various users commenting on the Reddit post noted, anyone could impersonate Allomancer_Jak on social media. Some believe HitBTC, along with other companies associated with it, are selectively scamming, meaning they pick specific targets to scam while operating as legitimate organizations.

Searching for complaints online against the exchange leads to a plethora of results, which implies something is indeed going on. As CryptoGlobe covered, eccentric cybersecurity pioneer John McAfee even launched a campaign against it earlier this year.

McAfee’s campaign, however, was likely motivated by HitBTC’s withdrawals fees on a project the bitcoin bull invested in. The cybersecurity expert accused HitBTC of being liable for the “death of untold people,” over a lack of support for Docademic (MTC), a project that claims to offer users free health care services.

The cryptocurrency exchange recently barred Japanese users from its platforms, as it’s set to launch a licensed subsidiary in the country in Q3 this year.

ErisX Wins License for Crypto Futures Exchange; Binance Futures Unveiled

The top daily news from the cryptocurrency and blockchain space:

  • ErisX granted license by U.S. regulator to clear physically-delivered cryptoasset futures contracts.
  • BitMEX CEO Arthur Hayes talks to Bloomberg about bitcoin price action.
  • Nouriel Roubini's keynote as critical as ever on cryptocurrency and blockchain technology.
  • Binance Futures unveiled by CZ at Asia Blockchain Summit.

At the time of writing, bitcoin (BTC) and ether (ETH) are trading at $9,778.7 (-11.2%) and $274.6 (-7.0%), respectively. As for the MVIS CryptoCompare Digital Assets 10 Index, it is currently tracking at 4,197.4 (-5.5%).

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ErisX Granted License to Clear Physically-Delivered Cryptoasset Futures Contracts

The U.S.-based cryptoasset spot (and soon-to-be futures) exchange announced the U.S. Commodity Futures Trading Commission (CTFC) granted Eris Clearing a Derivative Clearing Organization license

As a registered DCO, the ErisX clearinghouse will offer the clearing of digital asset futures contracts traded on ErisX’s regulated derivatives market, which is scheduled to launch later this year. The exchange aspect of the digital asset futures contracts will run through Eris Exchange, which has held a designated contract market (DCM) license since 2011.

BitMEX CEO: Bitcoin Market Remains ‘Retail-Led Phenomenon’

The price volatility characterizing the bitcoin market very much remains a “retail-led phenomenon,” according to BitMEX co-founder and chief executive Arthur Hayes, who appeared on Bloomberg Daybreak: Asia from the sidelines of the Taipei-based Asia Blockchain Summit.

Commenting on bitcoin’s recent price action – a two-week period wherein the world’s top cryptocurrency spiked from $10,000 to nearly $14,000, then dipped all the way back to $10,000 – Hayes surmised that retail investors had once more returned to the volatile asset class, partly because of the news surrounding Facebook’s Libra cryptocurrency.

Fiery Dr. Doom as Critical as Ever of Cryptocurrencies

Presenting at Asia Blockchain Summit was well-known economist and crypto-skeptic Nouriel Roubini, who put forward a number of reasons on why he believes the entire industry and asset class is "a waste of money and a waste of time."

From the ground level, Roubini's keynote was rather well-received. Indeed, a number of his arguments covered areas of the industry that most would admit need improving, such as liquidity issues facing exchanges designed to be decentralized.

The keynote, which also saw Roubini label Ethereum creator Vitalik Buterin a "benevolent dictator," comes on the eve of a highly anticipated debate with BitMEX's Hayes at the conference tomorrow.

Binance Futures Unveils by CZ at Asia Blockchain Summit

Presenting at the Asia Blockchain Summit, Binance co-founder and chief executive Changpeng ‘CZ’ Zhao announced Binance Futures, a cryptocurrency futures trading platform that will launch in the coming months.

In explaining some of its features, CZ revealed that Binance Futures will initially support BTC/USDT futures with up to 20x leverage. Following this, Binance Futures will eventually roll-out support for not just higher leverage, but also for more cryptocurrency futures trading pairs.