HitBTC is Allegedly Holding User Funds Ahead of Proof of Keys Event

Cryptocurrency exchange HitBTC has been suffering a series of complaints from its users who claim that their accounts have been frozen ahead of the Proof of Keys event, which is scheduled to be held on January 3rd.

The annual Proof of Keys event is part of a movement started by Trace Mayer, a well-known bitcoin (BTC) investor and host of the Bitcoin Knowledge podcast. Those who participate in the event withdraw their cryptocurrency from centralized exchanges (or any other third-party service) every year on January 3rd. The purpose of withdrawing funds is to determine whether third-parties can be trusted with managing users’ assets.

On December 31st, 2018, a Reddit user named PEDXS wrote a complaint, noting that HitBTC was not allowing customers to withdraw their funds from its exchange. Redditor PEDXS claimed that he had submitted the documentation required to pass know-your-customer (KYC) checks and requirements. He also alleged that HitBTC had been holding his funds for 6 months.

HitBTC Allegedly Failing To Keep Its Promises 

However, PEDXS noted that he had been able to withdraw most of his money from the controversial Denmark-based crypto trading platform. There is only a small amount of crypto left in the user’s account with HitBTC for day trading purposes. Commenting on the frustration he experienced when dealing with the exchange, PEDXS revealed:

After months of sending 40 plus emails, HitBTC finally unfroze my account. I immediately withdrew most of my funds but left a small amount to day trade. I did that because HITBTC promised that “No further automated restrictions will be applied.”

Confirming that he also experienced problems when trying to withdraw his funds from HitBTC, Reddit user LOOKATMYIQ wrote:

Submitted all my documents/evidence for KYC days ago and now support [is] going cold on me. Have I been scammed? I have been trading crypto for years on all kind of exchanges and never had my funds locked without warning like this. Support [was] fast to respond when asking for additional (over the top) information but since I have given them everything they have asked for they’ve just disappeared on me.

As an experienced cryptocurrency trader, PEDXS claims to have profited from his trading activities as he managed to “build back [his] balance … to a couple BTC.” But with the Proof of Keys event approaching, HitBTC allegedly “blocked” all the withdrawals he tried to make and reportedly froze his account again.

"Failing To Keep Up With Innovation & User Demands"

Harsh Agarwal, an online exchange reviewer, noted:

HitBTC was something that began as a promising crypto exchange and got lucky with the big crypto wave in 2016 and 2017, but it [definitely] failed to keep up with the innovation and user demands. They are barely surviving, and this can have a major impact on users who are using HitBTC as their crypto exchange.

Meanwhile, eccentric crypto enthusiast John McAfee has also been warning his followers regarding HitBTC’s questionable operations. McAfee tweeted (in July 2018): 

The crypto exchanges have become the thing that we have originally fought against. Their power is immense. Hitbtc, for example, has increased suffering for millions of poor people who cannot afford the minimum buy-in since it is greater than their monthly income. Boycott them.

As CryptoGlobe reported in July 2018, several HitBTC users had claimed that the exchange was holding their funds without providing a reason as they had already submitted all required KYC documentation. The frustrated users had also accused the exchange of engaging in "selective scamming" as it was allegedly going after certain accounts.

$1.5 Billion Hedge Fund Ulysses Capital Invests in NULS (Again)

NULS, a blockchain designed to enable customizable modules and cross-chain operability, has secured investment from Ulysses Capital, a Los Angeles-based family office managing roughly $1.5 billion worth of assets.

Commenting on his fund’s investment in a blog post published by NULS was Joon Lee (Fund Manager, Ulysses Capital), who praised NULS’ “strong technical team” for sticking to their roadmap; something “we don’t often see” occur in the crypto space, he added.

If anyone was to know how diligently NULS abides by their roadmap, it would be Ulysses Capital. Indeed, the investment into the enterprise- and developer-focussed blockchain project was not the first for the long/short hedge fund.

It was only last October when Ulysses Capital – who at the time had “recently established a crypto fund to invest in cryptos and blockchain companies” – invested directly into NULS’ same-named cryptocurrency.

For Ulysses Capital, the initial investment into NULS doubled as a strategic partnership. According the October announcement, Lee shared his fund’s intention was to “build a win-win relationship with [NULS] by creating more opportunities for NULS in the future.”

NULS Seeing A Lot of Investment

Notably, Ulysses Capital is not the only crypto-specific fund in recent times to have seen potential value in NULS. Late last month, BlockGroup, the parent company of the BlockVC, announced their investment in NULS through its newly established $200 million crypto fund. As was the case with Ulysses Capital and their crypto-specific fund, NULS represented the first investment by BlockGroup’s.

As for how NULS is tracking as a project, the team is currently testing their recently released alpha version of NULS 2.0. Promisingly for investors such as Ulysses Capital and BlockGroup, NULS revealed in today’s investment announcement it “has multiple enterprises and individuals participating in the 2.0 alpha test and is currently considering additional participants to join the environment.”

Announced last November, NULS 2.0 represents a “new modular architecture enhanced with microservice suites, that have no programming language limitations.” Prompting the design overhaul was the core team’s realization that, whilst NULS 1.0 achieved “the modular effect at the coding paradigm level,” it was far too constraining for developers. For CryptoGlobe readers wanting to learn more about the benefits of NULS 2.0 – especially as it relates to NULS 1.0 – we recommend reading this detailed blog post.