Cryptocurrency

Proof Of Keys Event Is Approaching, And Cryptocurrency Exchange HitBTC Freezes Clients Funds

Proof Of Keys Event Is Approaching, And Cryptocurrency Exchange HitBTC Freezes Clients Funds

According to multiple sources, the famous cryptocurrency exchange HitBTC freezes its customer’s accounts ahead of the event.

HitBTC freezes clients accounts ahead of the event

Today, January 3rd marks the tenth anniversary of the Bitcoin genesis block creation. Tracy Mayer, famous investors, try to launch a new tradition which is called “proof of keys.” It officially begins in a couple of hours according to the website. Mayer is encouraging people to withdraw all their bitcoins and cryptocurrencies from a third-party cryptocurrency exchange.

The reasoning behind the event is that investors can prove their ownership of cryptocurrencies and see if the exchanges hold all the bitcoins they say they do. However, according to several sources, the exchange HitBTC freezes customers funds before the event. A user accused them of suspending his withdrawal request. Redditor PEDXS stated in a post that he had passed know-your-customer (KYC) after waiting six months to access his account. Now, before the event, they froze his account once again.

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“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”. Over the months, from day trading I have built back my balance up to a couple of BTC. With the proof of key date approaching, I felt that HITBTC is the prime suspect for being insolvent, so I tried withdrawing my BTC. Guess what, they blocked the withdrawal and froze my account again.”

Is HitBTC the only exchange that will freeze accounts?

Redditor LOOKATMYIQ also stated that he had trouble withdrawing money from HitBTC.

“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.”

John McAfee even asked investors to boycott HitBTC earlier in 2018 according to a Twitter post. He argues that the cryptocurrency exchanges have become the very thing we were fighting. All crypto enthusiasts are fighting against our financial system and want to take control of their money. According to a British politician, banks are broke. They have even created a system that in a sense is illegal. They are printing money and lending money that they do not have. Are the cryptocurrency exchanges doing the same or are they holding all the cryptocurrencies they say they do? Today’s event will put the cryptocurrency exchanges to the test. Is HitBTC the only exchange that will freeze its user’s accounts or will more exchanges do the same after the event?

Image Source: “Pexels”

Ledger Nano S - The secure hardware wallet