Bitcoin Forum

Don't be this guy,

https://i.imgur.com/SJOCG2Z.png

https://twitter.com/ilcreations/status/1295050067573907457

The story goes that he registered from an block country based on HitBTC's but the exchange allowed him to deposit first and then when he is about to withdraw, HitBTC throw the argument of residency:


https://hitbtc.com/terms-of-use

The question is, how did they allowed him to register and then make a deposit on the first place?Looks to me very shady, the guy is located in the States.

Although we all know that HitBTC is a scam site and has many accusations in this community way back 2017. But still there might be newbies that are going to fall for this trick. So I advise them to read the ToS first very carefully as you might be the next victim.

This is just generally scammy behaviour from anything.

1. Sites list their important terms and conditions if they're ligiyimstr as they're expecting people to at most skim their terms and conditions - I certainly don't annotate them.

Also if its illegal in their country, you should have some form of verification as they log in - geolocate an ip address for example.

Majority of users doesnt really have that small time on reading up ToS neither they are dealing with and exchange or even on gambling sites which do have some restricted countries.

Im not saying that Hitbtc should took all the blame but also in the user itself on just missing out on reading the basic thing.Hitbtc is been known when it comes to shady stuffs and so as with Yobit and other
similar exchangers that does have similar reputation.

Lastly, on why the heck they do end up on hitbtc if theres https://www.binance.us/en ?

Honestly, no one will read the full TOS before to register, but it's mandatory by self conscious to check restricted countries and other limitations (fees/KYC/...) .
Most exchanges, if not all of them, allow new registrant to make deposits and submit trade orders without the need to verify their accounts. Once they want to withdraw, KYC is enforced.
Despite the fact that HitBtc is a scam exchange with one of the worst reputations in the market and not advised to be used at all costs, users from restricted countries in any other legit exchange would face the same issue. However, a legit exchange should ask for the registrer country in the sign up form and restrict it from submitting the request if he is from one of its restricted countries. An IP check can also be used .

Maybe a new player in the crypto world and got the idea of using the site by recommendations, maybe by friends, social media groups, etc. But even for experienced ones, admit it that sometimes, users don't really read the TOS.

I will blame the platform for this as in the first place, they should not allow the registration from their restricted countries. Have seen lots of gambling sites always do this kind of notice about countries restriction so I don't think it was a difficult task for HitBTc to put that noticed on their page. A shady way to trick new users. So unprofessional.


Actually, I've just started to make a habit of reading the terms about countries and KYC when almost all crypto trading platforms began implementing strict rules including KYC. Back then, no need for this mandatory KYC thing, and Standard and Basic accounts can transact freely without worries eg. Coinbase, Poloniex, Xapo, etc).

I'm raising my hands being guilty of this. Reading the full TOS needs time which most registrant never figure out how important it is. But as I said, it takes time and not sure they all understand it, just like they saying it was a waste of time rather than to fill the KYC and do the deposit. This mistake happens multiple time and I'm not sure people did learn this but just keeping themselves being ignorant (maybe I'm rude but that is the truth).

But also, the exchanges will have to do something about this and have some warnings upon registration if they are allowed for their site or informing that their country is blocked.

Another example, when I try Bitpay and open it, a message appears Access denied. So I can't use it at all.

https://talkimg.com/images/2023/05/17/blob6261704d4b69a755.jpeg  https://talkimg.com/images/2023/05/17/blob59d61de4b2e3864a.png

I don't know if HitBTC applies the same to users who are in blocked countries or not.
Supposedly, if it is prohibited for certain countries, the application or website cannot be accessed by users residing in those countries.

Ideally. But since HitBTC is not only implementing its ToS but is also trying to create a trap and make money out of it, it allows registrations and deposits from citizens of banned countries before it would inform them that they cannot make withdrawals due to such terms.

While clients should try to make it a habit to read a site's ToS first before finally opening an account, this case here is more of a fault of HitBTC than the customer's. The customer is certainly at fault as well but HitBTC is the one committing the fraud here. 

It is sneaky, to say the least, for a site to state in their ToS that any citizen from certain countries "are not in any case allowed to access and use our Services" and yet it is providing them easy access when it opens their registration to them and, worse, deposits.

While I can't blame the person whose funds are being frozen due to lack of sense of responsibility of the said website to block unauthorized countries from accessing their site. There are still numerous cases wherein the funds of their customers are being taken as hostage due to lack of KYC as well.

Even before, HitBTC already have these fraudulent activities and has been reported multiple times on their reddit page. Agree with @stomachgrowls though.

---

[1] https://www.reddit.com/r/EN_HitBTC?utm_medium=android_app&utm_source=share

Sometimes, exchanges have special restrictions on customers to trade one cryptocurrency

Example:
On ftx.com (http://ftx.com) exchange, with the trading pair https://ftx.com/trade/SRM/USDT, US. citizens are not allowed and if you are not US. citizen, you need to bear in mind that you won't be allowed to sell SRM to US. citizens. I don't know what the rule is practically. As a customer, I don't have any data in hands to know my trade partners are US. citizens or not.  :D

In the past, Poloniex has same restrictions on Chinese cryptocurrency as I recalled.

But these special restrictions are not mind probably by those users so when they already got their fund on that site and wanted to withdraw thats where the problem lies.

The exchange has every right if the rule stipulated on their ToS but if not, then they can be flagged as fraudulent firm. I only used once this hitbtc exchange and so far got no problem with it. In case of the example of the OP, I guess he thought that hitbtc is hassle free market but consider the scam accusation before on them maybe its for real.

People need to realize that exchanges going to require AML/KYC is going to be totally inevitable. Yes, even the universally-loved-due-to-them-not-totally-requiring-KYC which is Binance will be forced to require AML/KYC some time in the future due to government intervention. People need to start learning how to use platforms like Bisq.

Did anyone actually checked if HitBTC doen't block registration from banned countries by tracking IP address?
What if they do but the users themselves bypassed it with VPNs?
Checking Igor's profile, he doesn't look like a noob who just registered blindly.

If you want to use any platform, do following things, step by step:
- Read their ToS (terms of service, terms of conditions) and FAQs.
- If your nation is not in their restricted aread, move onward to register your account.
- Important step: if they have KYC requirements, and you don't care about privacy of your identities, let do full KYC to avoid any hassle later.

Some people don't care about their privacy but they are lazy and postpone to finish all level of KYC on the platform, then when troubles occur, they can get troubles with their KYC.

As always, if you care about privacy, try to choose platform does not require KYC that is so scarce today. Because of the Why KYC is extremely dangerous – and useless (https://bitcointalk.org/index.php?topic=5221497.0), you should never take risk on new platform and submit KYC verification. If you do this, it is better to do this on old and reputable platforms.

Reading further into the Terms of Service, in the same section as the extract in the OP, HitBTC goes on to stating:

As per their words, they should "force you to withdraw all the crypto assets". Now the catch here may be that they are requiring @ilcreations to pass the KYC, and then (speculation) saying that he can’t pass it, because his country of residence is amongst those that cannot use the platform.

If that is the case, it’s pretty unethical on HitBTC’s behalf, since the catch-22 type situation is foreseeable and likely recurrent, and a procedure should be set in place to comply with the "force you to withdraw all the crypto assets" statement.

HitBTC stating in the Tos that they'll force users using their service in a restricted jurisdiction to withdraw their crypto assets sounds more like they are forcing the user out, but not with their funds, because it's impossible for such users to pass KYC on HitBTC, so how can they leave the exchange with their assets?

I know how frustrating "support" can be on some centralized exchanges, if HitBTC fail to recover assets when their customers make mistakes like this (failing to read HitBTC's Tos) it is because they only decide not to, and will prolly channel the funds to their own use and it's bad for their reputation to the community.

HitBTC is using what some online casinos do as well.
You can sign up, deposit, play, and lose money. But if you win and want to withdraw, you might get your account blocked due to multiple accounts or being from a restricted country.

Not everyone does it of course. One casino I used to visit in the past no longer allows me to play there because my country is restricted. And there is a notice when I visit the domain that my location isn't allowed. That is what HitBTC should do as well.

I remember like a year ago several Balkan countries where not allowed to trade on Binance. The users didn't get their accounts blocked/restricted unless they logged in from an IP of a restricted location. If you did, Binance sent you an email giving you a date until when you had to withdraw your money. I remember reading about it in the local section.

It was possible to cheat the system by using a VPN or by just waiting it out. After some time the restrictions were removed.

Because they know those are easy money, why do you think!
KYC after depositing is a new legal scam, you want to rob a customer you put him though enough stupid KYC procedures until he dies and there is nothing really one can do, especially if he sums involved are not covering a lengthy lawsuit or the guy is looking like one that will not go to the police himself. I bet that some of these exchanges have one whole department, maybe even bigger than the customer support that hunts for accounts that can be terminated this way, far more productive taking 100% with one swoop than 0.1% each trade.

Read the terms, read all of it, and nothing will change, most of the ToS are so vague that when they want to shut down your account they have a hundred paragraphs to throw in your face. Exchanges have always hidden behind their ToS as a shield to do anything they want, and if somehow your situation isn't covered by the existing ToS, they have a special paragraph just for that:

Now argue with that.

Besides, all this it's in the ToS defense is pure bs, in the EU we have laws against unfair contract terms, no matter what the exchange says in those terms if a judge deems them unfair they can wipe themselves with all that mumbo jumbo.
For example:


Again, if they provide services to EU customers this is unlawful as it limits the right to legal action.

This is another lesson learn. I have to be very careful all the time here with cryptocurrency. And reading information like this really help. In fact the shared details are not only applicable to hitbtc but also to other exchange who were following the mandate of the government of those residing in areas where cryptocurrency is being regulated or prohibited for the residents in their place.

In our place cryptocurrency too were being limited to community. Not all crypto are available and allow for the community to buy. There are only few exchanges given the license to operate and only few crypto also has been offer for the community. The problem is that due to espenses that exchange has been through with the government higher fees also were being taken in every transaction.But at least though the transaction is high crypto exchanges are legit and lesser chance to scam the users.

Yeah, I also use Tor or VPN when a website or application is blocked by the provider that I use, such as Bitpay and others. For HitBTC I don't need to use a VPN, because I am not in a country that is blocked by HitBTC. :)

https://talkimg.com/images/2023/05/17/blob81328829b7031fa9.png  https://talkimg.com/images/2023/05/17/blob5f74f3cab68c8722.png

Well, I must admit that I don't read ToS, and I think that most of us don't read it. I just click "agree" and move on. Yes, I know it's not good thing, but I just can't force myself to read the very long and very boring rules. And if something bad will happen, offcourse, it will be my fault that I didn't read rules. Exchanges, gambling and other kind of websites are using this thing for their benefit.
In perfect case, if exchange don't accept users from specific country, website should be not accesible there. But in this case, HitBTC let user to signup, make deposit, trades and etc. I don't know how this story ended, but HitBTC should return deposit for this guy.