Did HitBTC intentionally froze withdrawals?

Dawid Paluch
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Trace Mayer, a Bitcoin investor responsible for launching movement called Proof of Keys, has raised some questions about possible account freezes on HitBTC, a cryptocurrency exchange. John McAfee reminds his words from September. He said back then that the exchange is corrupted.

McAfee won’t let us forget about him. A few weeks ago, we wrote a story concerning his bet. Now, he is one of the main characters in our next story.

Proof of Keys – what’s that?

Trace Mayer, a podcast host and Bitcoin investor, has created a movement – Proof of Keys. The action requests traders to withdraw their assets deposited with a third party service on every January 3rd. The whole intention of doing it is to hold all these third-party services accountable by testing them for their financial competence. The movement is focused on determining whether or not crypto exchanges hold the funds that have been deposited into their private wallets.

On December 31, 2018, PEDXS, Reddit’s user, filed an oficial complaint. The user accused them of suspending his withdrawal requests. His account got suspended six months ago. After months of verifying his data, his account was unlocked. He immediately traded most of his assets. However, he left small amount of funds to daily trading. He continued:

Over the months, from day trading I have built back my balance up to a couple 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.”

After PEDXS complaint, others users confirmed that they also faced withdrawal rejections.Trace Mayer responded to that problem via Twitter:


I told you so

John McAfee has always been an opponent of HitBTC and he often criticized the platform. In June, he said that the crypto exchanges had become the thing that he has fought initially against. He was convinced that HitBTC “has increased suffering for millions of poor people who cannot afford the minimum buy-in since it is greater than their monthly income. Boycott them.”

Later in September, he tweeted:

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As usual, the cryptocurrency guru knew everything before anybody.

The exchange has yet to respond to the accusations. The Proof of Keys will be conducted in less than few hours.


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