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.

HitBTC

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.

HitBTC

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.

Korea’s Largest Bank No Longer Crypto-Averse; Coinbase Card Hits Six More Countries

The top daily news from the cryptocurrency and blockchain space:

  • Korea’s largest bank working on cryptoasset custody service.
  • Coinbase Card expands to six more European nations.
  • CryptoCompare teams up with Nasdaq on cryptoasset pricing product.

At the time of writing, bitcoin (BTC) and ether (ETH) are trading at $7,971.1 (+0.2%) and $248.1 (+1.0%), respectively. As for the MVIS CryptoCompare Digital Assets 10 Index, it is currently tracking at 3,936.5 (+0.7%).

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Korea’s Largest Bank Working on Digital Asset Custody Solution

KB Kookmin Bank, the largest bank in South Korea, is preparing to enter the crypto custody space, reported CoinDesk Korea, after having signed a strategic business agreement with blockchain startup Atomrigs Consulting.

The announcement is particularly notable, given that KB was one of the banks that “were reluctant towards providing crypto exchanges with banking services several years ago,” tweeted Joseph Young, one of the crypto industry’s most recognized analysts.

Both KB and Atomrigs will explore various other blockchain- and crypto-related business opportunities moving forward, also.

Coinbase Card Now in Six More European Countries

Top-tier cryptocurrency exchange Coinbase is launching its Visa debit card in six more European countries, CNBC reported. The expansion follows a successful debut in the U.K. roughly two months ago.

Known as Coinbase Card, the solution allows Coinbase users to spend cryptocurrencies like bitcoin (BTC), ether (ETH), and litecoin (LTC) in stores and online at any merchant that accepts Visa.

The six European countries Coinbase Card is now available in are Spain, France, Germany, Ireland, Italy, and the Netherlands. Regarding a would-be U.S. expansion for the card, Coinbase U.K.’s chief executive Zeeshan Feroz told CNBC the team “will be looking at all [its] key markets including the U.S.” For Coinbase to make the move, it firstly “needs to find the right banking partners,” the article explained.

CryptoCompare Partners with Nasdaq on Cryptocurrency Pricing Product

Leading provider of cryptocurrency data and indices, CryptoCompare, announced a strategic partnership with financial services giant Nasdaq to launch a new cryptocurrency pricing product: ‘Nasdaq/CryptoCompare Aggregate Reference Prices’.

The product will be made available on the Nasdaq-owned platform Quandl, a solution self-described as a “premier source for financial, economic, and alternative datasets, serving investment professionals.” The data set – which is delivered daily with an intraday data frequency – covers more than 140 of the most of liquid cryptoasset trading pairs.