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.

Japan Arrests Two for Buying Crypto Linked to Coincheck’s $500 Million Hack

Authorities in Japan have arrested two men in Tokyo for allegedly buying cryptocurrency linked to what is considered the biggest security breach in the cryptocurrency space.

According to the Jiji Press, the men were held by the Metropolitan Police Department for allegedly buying NEM tokens from the Coincheck hack, where hackers – believed to be from North Korean group Lazarus – stolen over $500 million worth of the cryptocurrency from its wallets.

Both men, a doctor from Hokkaido and a company executive from Osaka, reportedly knew the cryptocurrency was stolen, but acquired it anyway. Tokyo police believe the individuals have been exchanging their NEM for other tokens since February.

The arrests are the first associated with the Coincheck hack that occurred in 2018. It’s believed to be the biggest one in cryptocurrency history, as even the Mt. Gox hack saw hackers steal around $340 million worth of BTC at the time.

After suffering the security breach, Coincheck was acquired by online brokerage Monex Group for “several billion yen.” After the acquisition, Coincheck was approved for an operating license after making several improvements to its systems. Its influence seemed to have grown once again, as once it listed little-known cryptocurrency Monacoin it surged 140%.

It’s worth noting that after the $500 million hack, Japan’s Virtual Currency Exchange Association (JVCEA), an official self-regulatory body of cryptocurrency exchanges, was launched to help improve businesses in the space.

Featured image via Pixabay.