John McAfee Prepares Legal Action Against Crypto Exchange HitBTC

Francisco Memoria

Cybersecurity pioneer and crypto fanatic John McAfee has recently revealed he and his team are “preparing a legal complaint” against popular cryptocurrency exchange HitBTC and its service providers, as the exchange failed to respond to him when he reached out.

As CryptoGlobe covered, McAfee launched a campaign against HitBTC late last month, seemingly because of its withdrawal fees on Docademic (MTC), a crypto project that reportedly offers users free health care services.

According to the cybersecurity expert, HitBTC hasn’t done anything to help people “access the only free healthcare in the world,” and is responsible for costing people in the cryptocurrency community money and is liable for the “death of untold people.”

Notably HitBTC replied to McAfee justifying that its withdrawal fees were high because it pays the Ethereum required to send transactions through the network, instead of forcing users to have ETH on their accounts to pay the fees. To cover the ETH fees, HitBTC claims to raise withdrawal fees in the token being withdrawn.

It notes that McAfee’s input would be welcomed while in search for a solution, and asks the cybersecurity pioneer if he has an “algorithmic solution” that could help out. One of the solutions the exchange proposed involves actively monitor token prices so it won’t overcharge users.

Replying to HitBTC, McAfee threatened to fund a $20 million lawsuit that could bring the company down.

McAfee claims to have written 11-12 messages to the cryptocurrency exchange, and only receive one reply in the end. It’s worth noting that after McAfee was spiked and left for dead and launched his campaign, the cryptocurrency exchange reached out.

HitBTC Controversy 

HitBTC is notably an incredibly controversial company in the community, as various users complain that it is selectively scamming community members, by locking the funds of only a few which are then seen as outliers. A Reddit user recently alleged the company was holding his funds hostage, despite his submission of proof of ID.

The exchange recently barred Japanese users from its platform, as it is set to launch a licensed subsidiary in the country later this year.

Over 5,000 Ugandan Citizens File Petitions Over Cryptocurrency Scam

Michael LaVere
  • Over 5,000 Ugandan citizens petitioned Parliament to issue a refund over funds lost in Dunamiscoins Resource Ltd. closure.
  • Cryptocurrency firm shuttered operation in late December, reportedly taking UGX 23 billion in client funds. 

Over 5,000 Ugandan citizens have petitioned Parliament following a high-profile scam by cryptocurrency firm Dunamiscoins Resource Ltd. 

According to a report by KMA Updates, more than 5,000 Ugandans submitted a petition seeking a refund over money invested in Dunamiscoins, which suddenly shuttered in December 2019. The fraudulent crypto firm billed itself as a privately owned company and claimed it was committed to providing complimentary crypto services to banks in order to benefit the low income and poor. 

In late 2019, Dunamiscoins’s bank account was suddenly frozen, with petitioners arguing that more than UGX 23 billion ($6.2 million) in client funds was locked in the firm. 

Arthur Asiimwe, de facto leader of the petitioners, told the Speaker and members of Parliament, 

[The] government licensed this company and gave it the go-ahead to work as a non-deposit taking financial institution; it carried out its duties as a microfinance company. They gave unrealistic bonuses.

Asiimwe and other petitioners argued that Dunamiscoins was operating as a microfinance company despite being registered as a non-deposit financial institution. While two of the company’s three directors have been arrested, Managing Director Susan Awoni remains at large. 

Asiimwe continued, 

We are not satisfied with what the Police report that they have failed to arrest the third director. We request that the Financial Intelligence Authority follows this up and trace where the money is and we are refunded.

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