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.

Dutch Bank ING Says Central Bank Digital Currencies are Inevitable

Michael LaVere
  • Dutch bank ING's financial experts predict central bank digital currencies launching within the next five years. 
  • Earlier reports say that China's central bank could issue digital fiat before the end of the year. 

Dutch banking giant ING says that central bank-issued digital currencies are inevitable, extending beyond China’s digital currency rumored to be released later this year. 

According to an article published on THINK, ING financial experts have said that a “fully-fledged central bank digital currency is coming. The bank’s chief economist Mark Cliffe and lead economist for digital finance Teunis Brosens gave the prediction that we “might well see a central bank digital currency emerge within the next five years.”

Brosens says the main benefits will be in the wholesale market, 

The main advantages are first within the wholesale arena of financial markets. We see that the existing financial infrastructure is outdated. It’s expensive, it takes a lot of time, compliance is difficult.

In addition to added security measures, Cliffe added that banks will find it advantageous to “get rid of hard cash and notes,” by opting for a digital equivalency. Central banks will also need to find ways to remain up to date in the field of financial technology, particularly with the rise of company-backed digital currencies, such as Facebook’s libra.

International Monetary Fund economist Priscilla Toffano was less certain on central banks launching digital currencies within the next five years. However, Toffano highlighted the value of digital currencies in reducing costs and improving financial inclusion.

Either prediction of central banks issuing digital fiat being years away may prove conservative in retrospect. While the People’s Bank of China has denied reports of a digital currency launching before the end of the year, other insiders have said it could happen as early as November 2019.

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