HitBTC criticized for slow action on returning stolen funds.May 02, 2018 at 16:16
Cryptocurrency exchange, HitBTC is being criticized for its delayed actions on returning stolen funds that were deposited in its platform to their respective owners.
Richard Sanders, a known crypto scam whistleblower and writer for multimedia portal, Medium, has already called for a boycott against HitBTC for the allegations asking investors to pull out from the exchange until it shapes up its services.
He claims that he helped a group of crypto investors that were scammed with as much as 1,000 ETH as he identified the scammer’s identity and other pertinent details.
“…I made it clear to this scammer that I could make the fallout of the situation far less horrific for them if they complied with returning the stolen ETH. In this rare case, the scammer was willing to comply with me. I had the scammer’s burner Gmail account, used to create a burner HitBTC account, and the private keys to an Ethereum wallet used to conduct the scam,” Sanders wrote in his piece published by Medium.
“There was one little problem: the scammer tried to send the 1,000 ETH to HitBTC. Since the scammer ran a pool on a contract site, the funds never made it to his individual HitBTC ETH wallet: just to HitBTC,” he added.
He noted that the custody of the stolen funds is currently with HitBTC which is not being fully participative on the process of returning them to respective owners as the exchange is employing several “delaying tactics.”
“Funds recovery should never be this hard in a situation like this. Even in a criminal investigation where organizations are raided and assets frozen, funds recovery might have been recovered by now. Any reputable exchange with a support team that is even mildly competent would have resolved this by now,” Sanders further stated.
The crypto scam whistleblower also mentioned that every request of rightful crypto owners for the custody of funds that they want to get back from HitBTC is usually futile even if enough evidence of ownership are already provided to the exchange.
He detailed that in most cases, the exchange will provide a petitioner with a timeline that it will fail to meet until an individual is asked for details that were already provided which will become a cycle until a claimant gets tired and ultimately drop its claim for the custody.
“By now, it’s clear at this point: regardless of whether it is gross negligence, incompetence, or maliciousness, HitBTC is falsely and illegally retaining funds from people that seemingly historically have given up and walked away, thinking nothing can be done,” Sanders expressed.
He also warned that he was able to secure vital information in order to serve a legal notice against HitBTC to have its assets frozen.
It can be recalled that HitBTC was launched in 2014 being operated by Hit Techs Limited in a still unknown location. As of March 2018, it has a daily volume of over $250 million.