The Proof Of Keys Problem

Dawid Paluch
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As it turned out, not only HitBTC had difficulty with passing the Proof of Keys event held on yesterday. According to many reports, other cryptocurrency exchanges had the same problem.

Yesterday, we reported that HitBTC, the 19th crypto exchange in the world (according to coinmarketap.com), may have intentionally frozen withdrawals. Apparently, other platforms might have done the same.

Prove of Keys as controlling tool

Not everybody knows, what the Prove of Keys really is. So we are here to explain. The PoK event is an annual movement held by cryptocurrency traders. How does it work? Simply. Owners of crypto withdraw their assets from exchanges to third-party services. Thanks to that traders can test the financial competence of their exchanges.

Trace Mayer created the whole movement. The podcast host and Bitcoin investor wanted to held crypto platforms accountable. The Prove of Keys event was scheduled on January 3.

Now, we find out that other exchanges had some difficulties with passing the ultimate test. It looks like Coinbase Pro, Bitfinex and few others also weren’t able to conduct the PoK. You can find the whole list of platforms with problems on official Prove of Keys site.

Not all exchanges got caught

For instance, Coinbase explained that the reported problem with trading was fixed only an hour after the incident. The platform had problems with trading on the BTC/USD market.

Bitfinex informed its clients that they had some issues. The company quickly assured its users that it is ‘working to resolve the problem and all funds are safe’. Later, the exchange published a statement via tweet:

Not every platform decided to address the issue. We still haven’t heard anything about the PoK from HitBTC. This cryptocurrency exchange only mentioned the TUSD smart contract on its Social Media accounts.

Still, the Prove of Keys event isn’t as impactful, as it can be. As of today, we can’t determine, how many exchanges had problems with fund withdrawals. We can only hope that more crypto owners will engage in the action in the future. Only with that, we can check, how many platforms try to mislead or cheat their own clients.

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