The action taken by crypto exchange HitBTC to stop withdrawals has not been well received in the crypto world, and some big industry players have expressed their displeasure. One of the reasons why this action is not well received is because it is happening at a time when a significant event is about to take place.
Mayer Is Not Pleased
The Proof of Keys organizer, Trace Mayer, has condemned the move taken by HitBTC, according to reports which started on December 31. The Proof of Keys urges digital assets owners to clear out their assets from third-party exchanges come January 3. On Tuesday, he tweeted the following:
“Has (HitBTC) failed Proof Of Keys? I do not have an account. Asked a friend to initiate a withdrawal. BEWARE!”
“Result: ‘Withdrawals are temporarily disabled on your account.’”
Soon more notable figures joined him, and one of them is John McAfee. McAfee used the opportunity to bring to remembrance that he “warned” the crypto community about the exchange and that he lacks faith in its operations. Here’s how he put it:
“I warned everyonw more than a dozen times. Don’t sign up. Don’t use it. Withdtaw your funds. I was trashed for calling out HitBT as a corrupt cimpany. Tough shit. You had six months warning from me to withdraw your funds. Do not ask me to help you now.”
Warning Signs and No Response
So far there has been no response from HitBTC’s executives. Also, no major exchange seems to follow in its path.
Mayer announced Proof of Keys last month, and it was geared towards increasing the understanding of crypto investors in the workings of decentralized networks, especially that of Bitcoin. When investors control private keys, there will be no need to rely on third parties any longer which, as argued by Mayer, will make it easier for investors to educate more people which will improve adoption.
HitBTC has had a controversial history for the six years it has been in existence. The controversies usually come from the dubious tokens and futures contracts it offers as well as the lack of transparency in its operations.
The tweets made by McAfee and Mayer on Twitter featured a lot of corruption accusations and “scam” practices with regards to the company, yet many appeared unconvinced.
The Crypto Dog, an account known for its trading advice, is of the opinion that the timing is more of a coincidence rather than a target at Proof of Keys, but notwithstanding, it still provides an opportunity to bring to light the transgressions of HitBTC.
Others didn’t take it so easy. Bitfi, a company known for the endorsement it received from McAfee as well as its claim of creating a wallet that cannot be hacked in September, which it later went back on, said that HitBTC had “blown its cover” and that the company was bankrupt.
“This is not like fractional reserve banking; this is just stealing your money,” said the executives.