Multiple sources announce that Crypto exchange HitBTC has had its customers’ accounts frozen ahead of the annual proof of keys event.
The Annual Poof Of Keys Event fast Approaching
HitBTC officially responded to a complaint that was posted on Reddit. The user had accused the crypto exchange of suspending his requests to withdrawal funds. PEDXS said that he had gone through the KYC processes and had passed a process that saw him wait six months to get access to his account. His confirmation was that he had already withdrawn most of his funds but still had some left in the account to day trade with.
The Redditor said that finally after having sent over forty emails to the exchange, his account was unfrozen. Another complainant stated that he had gone through the same thing.
The Reddit user also complained that his account was frozen even after submitting his documents and evidence of having gone through the KYC process. He complained about the exchange not being forthcoming with information and failing to respond to his complaints. He added that he has been an avid Crypto trader on various platforms and had not come across a similar situation on other platforms.
A representative of the Crypto exchange responded saying that the matter was being investigated and a follow-up would be done. Some Redditors have voiced their doubt that the exchange might be locking accounts to avoid the large-scale coin withdrawals that take place annually.
Users and Crypto Community Concerned About HitBTC Direction
The annual proof of keys event is an event that was started by Trace Mayer, a prominent Crypto investor. The crypto investor asked traders to withdraw funds that they had deposited via a third party every 3rd of January. This is so that investors could test the solvency of these third party service providers. This event has been previously used to test whether Crypto exchanges are holding the funds which are deposited in the wallets.
The Reddit user said that he has been able to grow his balance on the HitBTC account to a significant amount of BTC coins. He went on to add that with the proof of keys event approaching and his suspecting HitBTC of being guilty of insolvency, tried once again to withdraw his balances. This, he said, was met with another freeze on the account, the withdrawal being blocked.
Failing To Keep Up With Users’ Demands
Harsh Agrawal, a reviewer, commented that although the Crypto exchange was a platform that started off as a promising project, it has in recent times failed to keep up with the demands of its users and has been lagging in innovation. He suggested that this shows that the exchange may be going through strains that will definitely affect the users who utilize the platform for trading. John McAfee had asked users of the Crypto exchange to boycott it earlier in the year.
He asked users to boycott the platform saying that it was offering a high minimum amount of buy-in which is more than most people could afford to invest.