Rumors and speculation are now surrounding the self-proclaimed “most advanced” exchange — HitBTC. Citing a recent report by Cointelligence, HitBTC has only $3 million in [] and [ETH] across its wallets, and there are four different areas where HitBTC’s data did not match up to what was expected: proof of reserves, withdrawal issues following its new KYC/AML policy, increased withdrawal fees, as well as the company’s anonymous team. Previously, a Twitter user called CryptoMedication said that users on crypto-specific social media sites like Telegram and Reddit had admitted to facing “trouble” while withdrawing their virtual currencies “for some weeks.”
“Is HitBTC Insolvent?” This is not the first time that people have raised such a question. Back in January 2019, complained that after completing their know your customer (KYC) procedures, submitting all documents, and answering all questions by the HitBTC team in order to withdraw their funds, their accounts were frozen. They also alleged that the exchange’s customer support team simply stopped responding to them.
This time, however, two of the representatives of HitBTC did make a response regarding at least some of the rumors.
In a letter to CoinNess.com, exchange representative Paola Balzano explained why there seems to be merely $3 million in and ETH across its wallets.
“We are not storing all of our traders’ funds in a single place (so-called ‘hot ’), which is known to researchers and general public. We use several secure storages (‘cold wallets’) for that purpose. To remain safe and secure, we do not disclose the addresses of our cold wallets. Published research does not reflect the actual state of the platform,” Balzano said.
Balzano’s words are a sure sign of denial that statistics by published research reflect anything true concerning the current state of the exchange, but what is the real condition anyway, if not insolvent?
Gretta Lee, another representative of the exchange, responded that HitBTC had been operating well ever since it was founded. “HitBTC exchange has been operating since 2013 with impressive results achieved. We have plans only to grow and provide even more efficient services to our users.”
Representative Balzano told CoinNess.com that an article would be published soon in the exchange’s blog to clarify the issue with more details and “make all further speculations on the topic pointless.”
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Published at Sun, 26 May 2019 09:38:21 +0000
