This is not the first time that HitBTC enters the spotlight with lousy news surrounding it.
There have been some inconveniences in the past regarding the trading limits and this time it’s making headlines after a complaint from a user. It also seems that the exchange’s funds have been frozen since May 19th according to a Redditor.
HitBTC is holding funds and asking for verification
A Redditor posted the issue that he had with the platform, claiming that the exchange is holding his funds and asking for personal social media account details before he is able to regain control over his coins on the platform again.
The Redditor claims that he already send personal data and documents to the BITBTC team including a bank statement and screenshot of his Coinbase tx from which he first purchased the Bitcoin in order to buy other tokens.
HITBTC does not seem to care, and it looks like they’re currently asking for the origin of every transaction that leads to the tokens that he has deposited.
They are also reportedly asking for his social media accounts and this is not something that a regular exchange would do.
The Redditor refused to offer all these details, and he’s currently waiting for a reply from the exchange.
“Thank you for provided information.
In accordance with the requirements of current anti-money laundering; proceeds of crime and counter-terrorism financing legislation, we are required to establish and record evidence of the identity and source of funds for our clients.
Therefore we kindly ask you to provide us with the origin of the following transactions:
Amount Currency Hash xxxxxxxxxxxxxxxxxxxxxxxx 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,” the email begins.
They also ask him for data regarding social media as we already mentioned above and they ask for links to the users’ profiles.
The team behind the exchange also told the user that they “kindly ask you to sign in to your HitBTC account with any network data disguising tools (VPN, proxy) deactivated.”
This is more than strange, and the subject requires keeping an eye on, as such actions coming from exchanges are not usually common in the crypto space. You can follow the entire thread on Reddit here.
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