Richard Sanders, one of the principal investigators at CodesBlade, said that the HitBTC cryptocurrency exchange is “the largest-scale criminally fraudulent entity” in the industry.
According to Sanders, HitBTC is “wolf in sheep’s clothing”. Although the company describes itself as the most advanced exchange on the market with a high level of security and liquidity, this could be a facade. Sanders argues that the exchange is insolvent and is designed in a way that allows them to cheat their customers selectively.
HitBTC has previously been accused of a scam by John McAfee and Trace Mayer, among others. Charges were given when the exchange halted withdrawals earlier this year.
According to Sanders, the cryptocurrency exchange could be insolvent because it was traded in user money. Given that HitBTC is not transparent and does not allow any audit, one can estimate its solvency based on the number of hot and cold wallets related to volume.
Based on this data, HitBTC’s volume is too large for its BTC reserves. Other exchanges, which accept third-party audits, have proven to be solvents.
Fake volume
HitBTC is often accused of falsifying its trading volume. This year, Bitwise’s report on the exchange volume pointed out in detail, noting that it is easy to prove that HitBTC volume is almost entirely fake.
The statements are made in an addendum that clarifies the company’s position on several known exchanges in the community. Bitwise used the same order book and volume analysis techniques that it applied to other exchanges.
Research shows that HitBTC exhibits similar anomalies observed in Huobi and OKEx, which makes Bitwise deduce that all of them had vast amounts of fake volume built on a small real user base. Third-party researchers have reached similar conclusions.
Bitwise’s research shows that Huobi and OKEx have a false volume ratio built on a small real customer base, but HitBTC is the worst example.
In addition, many of HitBTC’s listed currencies may be appealing to everyday traders, but the exchange lists many crypto assets without conducting an appraisal.
Thanks to the platform status as a leading exchange, HitBTC’s unofficial charge of $ 250,000 for a list that allows lots of shitcoins to reach large groups of investors directly.
HitBTC will cancel the coin and face a small backlash because no one knows who the CEO of the company is, in the case of an exit scam. The entities behind the platform claim that the group is anonymous for security reasons.
The scam was made by HitBTC exchange
Two Canadian brothers pleaded guilty to cheating a 64-year-old woman in Oregon with more than $ 140,000 in Bitcoin money by impersonating a HitBTC exchange that could face a two-year prison term.
The brothers Jagroop Singh Khatkar and Karanjit Singh Khatkhar have been guilty of conspiracy to commit fraud by a scam made through Twitter in July 2018, according to court records on December 16.
Everyone pleaded guilty to conspiracy to commit fraud and money laundering. Both will serve a two-year sentence when authorities announce their sentences on March 17. Jagroop is still completing his university degree, awaiting sentencing.
The woman will get her money back when US attorney assistant Quinn Harrington receives a check for $ 142,349 from the brothers. This prepayment, along with $ 6,000 and $ 230 confiscated by law enforcement, is equal to the value of the Bitcoin stolen from the victim.
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