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 To cover the ETH fees, HitBTC claims to raise withdrawal fees in the token being withdrawn.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.

PayPal is Cautiously Optimistic About Partnership with Libra Association

  • PayPal cautious about future with Facebook's digital currency libra. 
  • Payment platform was one of the first companies to join and support the Libra Association.

Payment platform PayPal is cautiously optimistic about its relationship with Facebook’s digital currency libra, despite being the highest-profile company to join the Libra Association. 

PayPal Backs Libra Association

In June, shortly after the official unveiling of Facebook’s libra, PayPal announced an intention to join and support the Libra Association, a collection of tech and finance companies promoting the product. 

At the time, PayPal billed the digital currency as a revolutionary product for people around the world, 

We believe in democratizing participation in the digital economy for people from all walks of life, and businesses of all sizes.

However, PayPal appears cautious about its future with Facebook’s digital currency. PayPal investor relations vice president Gabrielle Rabinovitch reiterated Sept. 12 that the company is a non-binding agreement with libra, 

It's a non-binding commitment. And obviously, I think there's a lot of work to happen before we get to that point where it becomes something more than just a very exciting idea.

She added, 

The goals and ambitions of Libra are very consistent with PayPal's overall ambitions in terms of serving the underserved; democratizing access to capital. So we very much believe in the potential of Libra.

While PayPal appears optimistic about the future of libra, the digital currency has endured months of regulatory and political scrutiny concerning its release. 

Earlier in the week, senior U.S. Treasury official Sigal Mandelker told an audience in Geneva that libra would be held to the highest standard of regulatory compliance in order to combat money laundering and terrorist funding.

 

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