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.

Facebook Flips Crypto-Related Ad Ban; Bitfinex Confirms $1 Billion IEO; Binance Margin Trading 'Very Soon'

Leading today’s crypto headlines was Facebook’s announcement it will significantly relax its ad policy for a number of cryptocurrency-related products and offerings. Bitfinex was again in the news, although this time it was with respect to the publication of its whitepaper ahead of a planned $1 billion token sale. Following the $40 million hack, Binance, in an attempt to give gloomy supporters something to look forward to, revealed they will begin rolling out a margin trading system "very soon."

Bitcoin (BTC), for the first time in nearly six months, rose north of $6,000 today. At time of writing, it is trading at $6,060.33 (+2.65%). Also seeing green today was ether (ETH) and the MVIS CryptoCompare Digital Assets 10 Index, which are currently $169.79 (-0.35%) and 2,865.4 (0.75%), respectively, at time of writing.

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Facebook Flips Cryptocurrency-Related Ad Ban

In a blog post released by the social media giant, it explained it will “no longer require pre-approval for ads related to blockchain technology, industry news, education or events related to cryptocurrency.” Worth noting, certain crypto-related ads, such as those for initial coin offerings (ICOs), that Facebook will keep banning. In relation to promoting cryptocurrencies or crypto exchanges, Facebook will continue to demand prospective advertisers firstly obtain pre-approval. This is the second time Facebook has loosened its policy on crypto-related ads since January 2018, when it introduced an all-encompassing ban.

Bitfinex Confirms $1 Billion IEO Rumors

Despite allegations of commingling from an ongoing investigation by the office of the New York Attorney General (NYAG), Bitfinex confirmed it is indeed planning to raise $1 billion through an initial exchange offering (IEO). As stated in a whitepaper published by the cryptoasset exchange yesterday, Bitfinex’s management intends to sell up to 1 billion LEO tokens at a unit cost of one tether (USDT). Reportedly, Bitfinex is currently conducting a private token sale round, which is set to close on May 11th, 2019. If required, Bitfinex will initiate a public token sale in the hope that the remainder of the LEO tokens can be sold.

Binance to Roll Out Margin Trading, CEO Reveals

In a live-streamed ask-me-anything (AMA) session, Binance co-founder and chief executive, Changpeng ‘CZ’ Zhao, declared the top-tier exchange – which yesterday suffered a 7,000 BTC hack – will begin rolling out a margin trading system “very soon.” The product is currently in a testing phase with large traders, CZ shared with his audience. Another notable outtake from the AMA was the Binance leader’s admission there are “a few different proposals and plans” in motion regarding stablecoin listings. It is “likely something may happen there,” added CZ, who was not yet able to commit to any particular option.