Bitcoin Forum

Due to constant reports of HitBTC freezing many different customer's funds, regardless of KYC compliance, and failing to unfreeze them within a timeframe that most would find reasonable, along with failing to uphold promises in the past, I believe that there are enough red flags regarding their exchange that it is important newbies are warned of the risks of using their exchange. While they may not necessarily be 'scamming' their behavior has the potential to cause people financial harm and newbies should be warned of it.

Example 1 - https://bitcointalk.org/index.php?topic=378827.msg51069211#msg51069211 - Thewowman777 alleges he has 0.83 BTC of funds frozen. His post has many links to Twitter reports of others complaining about frozen funds. (May 2019)

Example 2 - https://www.ccn.com/bitcoin-exchange-hitbtc-freezes-customers-accounts-ahead-of-proof-of-keys-event/ - HitBTC freezes many customer's accounts. Speculation was that it was in the run-up to an event of mass withdrawals.

Example 3 - https://bitcointalk.org/index.php?topic=5194434.0 - ytrezq alleges that he has had an account locked for a full year with a significant amount of money inside.

Example 4 - https://bitcointalk.org/index.php?topic=705154.0 - HitBTC, in 2014, offers users $100 for a full review of their site, and fails to follow through with it after reviews are made

Example 5 - https://bitcointalk.org/index.php?topic=378827.msg52287115#msg52287115 - JollyGood alleges that they are faking their trading figures and skipping over complaints in order to selectively scam

More examples of alleged failed withdrawals
https://bitcointalk.org/index.php?topic=378827.msg52609804#msg52609804
https://bitcointalk.org/index.php?topic=378827.msg52530850#msg52530850
https://bitcointalk.org/index.php?topic=378827.msg52609881#msg52609881
https://bitcointalk.org/index.php?topic=2556342.0
https://bitcointalk.org/index.php?topic=2217068.0
https://bitcointalk.org/index.php?topic=5092112.0
https://bitcointalk.org/index.php?topic=5122054.0
https://bitcointalk.org/index.php?topic=2617882.0
https://bitcointalk.org/index.php?topic=3251481.0
https://bitcointalk.org/index.php?topic=2167246.0
https://bitcointalk.org/index.php?topic=2655487.0
https://bitcointalk.org/index.php?topic=2569791.0
https://bitcointalk.org/index.php?topic=2688026.0
https://bitcointalk.org/index.php?topic=2854883.0
https://bitcointalk.org/index.php?topic=2684811.0
https://bitcointalk.org/index.php?topic=2790367.0
https://bitcointalk.org/index.php?topic=2676558.0

Link to flag: https://bitcointalk.org/index.php?action=trust;flag=895

There are sufficient amount of threads to red-flag every single major exchange, and this is due to theymoses idiotic policies. I contest this flag.

I appreciate the opposing opinion. Could you elaborate on what you mean by the idiotic policies?

Edit: Obviously, I appreciate that there are lots of threads that are made by people who accuse exchanges of scamming the moment they encounter a withdrawal issue. This yellow flag is due to the fact that these accusations persist off-site and it would seem that they are increasing in frequency.

You might as well tag them all. Every exchange has user complaints. Those users don't delete complaints after they have been resolved. Every legal exchange is subject to KYC laws - but customers consider it a scam if their funds are frozen. Users that have broken the law and have their funds seized will scream as loud or louder than those who have not broken the law and had their funds seized. Often an exchange cannot legally disclose why it is frozen.
Exchanges that are not subject to KYC are not in jurisdictions that comply with SEC rules and based in dubious countries. (So usually also exclude US citizens).
A lot of exchanges have dubious ownership structures - either in tax havens or hidden through trusts or shelf companies.
The exchanges that do comply with laws of the jurisdiction that they are in can seize your funds if requested by a Government and can pass your information to Government agencies.
Then there is wash trading and US tether... Has the exchange got Tether listed ?

Some exchanges offer low or no fee trading to coin devs. This allows the coin devs to trade their own coin giving the ability to create (fake) high volume without costing anything or a lot.

https://i.imgur.com/uFLy3QU.png
Source: https://www.bti.live/reports-april2019/

http://www.bti.live/exchanges/

Bitcoin-Rigging Criminal Probe Focused on Tie to Tether (https://www.bloomberg.com/news/articles/2018-11-20/bitcoin-rigging-criminal-probe-is-said-to-focus-on-tie-to-tether)

@DiamondCardz by idiotic policies I refer to the policies related to: Trust ratings, flags, and scam accusations. You are free to damage any business and entity with false accusations ad-nauseum (proven by QS & co.). Therefore, without a third party that has insight into the customer-exchange disputes, you can always assume that the customer is at fault unless there is objective evidence (no, screenshots don't fall under this category and no funds being locked is not evidence of malpractice) claiming otherwise.

To me, this exchange has ceased to please and I brought out my things and ran away 2 years ago. :D

Supporting this flag, HitBTC make people jump through all sorts of KYC hoops and still refuses to process withdrawals. Surprised to see people still trading there.

Pot, meet kettle.

I've decided to withdraw my support for this flag and lock the thread. I think Lauda's arguments are reasonable here and I'm not the kind of person who won't admit that my case isn't strong enough. :)