Top Crypto Exchange HitBTC Accused of Fraud

Girish Chugh

March 11, 2019 10:31 am

Top Crypto Exchange HitBTC Accused of Fraud
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The developers of Bitcoin Private (BTCP) have accused HitBTC, the leading cryptocurrency exchange of Europe, of committing a fraud related to their delisting from the exchange following a coinburn.

The accusations were conveyed in a letter issued on February 26 to the exchange by the Petros Law Group on behalf of the BTCP community, which include the developers and contributors. Whereas, the letter was published on Twitter by Bitcoin Private on March 9.

The letter was published on the day BTCP got delisted from HitBTC. The authors of the letter alleged that the cryptocurrency exchange attempted to extort BTCP following some unresolved complication that resulted from the coinburn.

Complications Occur After BTC Fork

As mentioned in the document, at the beginning of the March 2018, BTCP was developed in a fork from ZClassic (ZCL) and Bitcoin (BTC) with an indication of a future coinburn in its whitepaper. As per the scheduled event, all the unclaimed coins since the fork were meant to be deleted. On March 2018, HitBTC reportedly charged the BTCP team a listing fee worth half a million dollars in Bitcoin.

According to the screenshots included in the document, the exchange’s BTCP addresses were created following the fork, indicating that users wouldn’t be affected by the coinburn.

On February 15, a day prior to the coinburn was scheduled, the cryptocurrency exchange reportedly reached out to BTCP asking for assistance in protecting its users’ funds, which turned into a request for reimbursement of 58,920 BTCP due to expected losses.

HitBTC recently released a statement on its official blog, which says that the BTCP team failed to provide a safe passage to move funds prior to burn. However, the exchange has compensated for all the custody losses.

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