HITBTC & other exchanges withdrawal issues

[gopnik]

I've been wondering lately why do i have to wait for ages (mostly days, minimum experienced now is 12 hours) to process simple withdrawals with brokers such as hitbtc, whereas regulated brokers usually clear transactions in about 30 mintes

This is extremely upsetting and unethical

The forums full with complaints about withdrawal issues at hitbtc and other unregulated exchanges are not a coincidence.

My theory is that most of their order books are fake and that they actually sell coins they do not have with bot generated buy and sell.
Audited brokers obviously cannot do that, hence the 30 minutes transfer

This scammy scheme allows them to expand their business far more aggressively than they could with only the traders deposits;
Fake volume / books are very common among smaller brokers who struggle to attract sufficient customers. The method is usually to lure new customers with attractive rates and then hold their funds as long as possible to create liquidity and pay other's withdrawals.

I have noticed many unatural and illogical behaviors when placing orders on this exchange which makes me think that the orders are fake and algoritm generated by the broker

They pay you when then get a matching deposit from another trader; meanwhile your money is frozen for hours or days and they use your deposit to profit and pay others, which is basically a sort of ponzi scheme

The problem of this over leveraged system is that in case of a massive selloff, the broker will be burnt and unable to pay the depositors which would likely lead to a scam exit

I asked the customer support to waive that shady algoritmic withdrawal restriction off my account, and stop this BS, as i still have a 2 BTC transfer that has been pending for 8 hours with them

i hope they can respond positively to this issue, as i'll for sure keep a lot of money away from their business if they don't

[antagonist]

one term is important to mention it here today is fractional reserve
it is same thing big bank have done for many millions of year and same thing now happen here in crypto world
at time like this with huge bitcoin price many more peoples are withdraw their btc
this is same thing as if all depositor withdraw usd form bank in one day same thing will happen

[juddilio]

Well I still have a transaction in process, almost 24h now. I withdraw 0,6 ETH from HitBTC to Binance and still nothing. Even the transaction hash doesn't show in etherscan (meaning they don't even processed it yet). This is a joke and trust me, as soon as I get the transfer I'll never touch HitBTC again and I advise you to do the same.