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.

BitMEX Underwent Botnet Attack Following Last Week's Market Crash, CTO Says

Michael LaVere
  • BitMEX CTO Samuel Reed says the exchange has fended off multiple botnet attacks since February.
  • Reed explained the vulnerability discovered following last week's market meltdown. 

BitMEX chief technology officer Samuel Reed explained the platform has been under attack from multiple botnet vectors since the month of February.

According to a series of tweets published on Monday, Reed responded to concerned clients over the exchange’s reported $1.2 billion worth of liquidations that occurred last week during bitcoin’s price drop. While BTC plummetted to $4,000 on Mar. 12, suffering its worst day of losses in seven years, whales were reportedly dumping on BitMEX and contributing to the downward spiral. 

Reed revealed in a tweet that BitMEX underwent two botnet  Distributed Denial of Service (DDoS) attacks on Mar. 13 from a network that had been probing the exchange for “some time.” Reed says the same botnet was responsible for an attack that occurred on Feb. 15.

According to Reed, the February attack was absorbed by normal DDoS protection, which prevented any downtime from occurring. However, the botnet was able to find a flaw in its AWS servers on Mar. 13, allowing attackers to gain access to an “endpoint” that was consistently slow. 

Reed’s tweets went on to provide an explanation for how the exchange was able to fix the vulnerability and promised to give more updates via blog posts in the coming days.

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