This January 3rd is the beginning of a new tradition that has been planned to force exchanges and other third party services to prove they actually have the reserves of cryptocurrencies they claim to own. Known as the Proof of Keys Celebration, the event name was coined by Trace Mayer and will involve users of the numerous third party services withdrawing as much crypto from the respective platforms. Users can then choose to return their funds back to the platforms if they wish so.
The exact date of the event is no mistake. Exactly 10 years ago on January 3rd, the genesis block of Bitcoin (BTC) was created.
HitBTC Restricting Accounts of Users Who Want to Withdrawing their Crypto
Redditor PEDXS took to the social media platform to express his displeasure with HitBTC restricting his account after passing KYC procedures and being granted the ‘verified’ status on the trading platform. Hhe explained:
Six months ago my account got suspended. After months of sending 40 plus emails, HITBTC finally unfroze my account. I immediately withdrew most of my funds, but left a small amount to day trade. I did that because HITBTC promised that “No further automated restrictions will be applied”.
Over the months, from day trading I have built back my balance up to a couple BTC. With the proof of key date approaching, I felt that HITBTC is the prime suspect for being insolvent, so I tried withdrawing my BTC. Guess what, they blocked the withdrawal and froze my account again.
He would later add that the timing of the withdrawal restrictions and the reluctance of HitBTC to respond to his queries can only mean that the coincidence is more than meets the eye.
The block occurred over 10 days ago. So far I have tried contacting them but only received automated responses. Communication has ceased for several days now, so I decided to post a warning on Reddit.
Hopefully, others will have better luck getting out their funds before Jan 3 when the insolvency will be exposed.
John McAfee Reiterates that He Had Warned Everyone About HitBTC
When the story broke of HitBTC restricting crypto withdrawals, John McAfee took to twitter to remind his followers that he had warned dozens of times about the workings of the exchange.
I warned everyone more than a dozen times. Don’t sign up. Don’t use it. Withdraw your funds. I was trashed for calling out HitBTC as a corrupt company. Tough shit. You had six months warning from me to withdraw your funds. Do not ask me to help you now.
His full tweet can be found below.
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.https://t.co/Ls9mzpUSbz
— John McAfee (@officialmcafee) January 2, 2019
Why Crypto Users Are Supporting ‘Proof of Keys’
Many crypto enthusiasts and traders have various reasons as to why they will be participating in the event. The major reasons are:
- Most crypto exchanges are centralized and they could be lying as to how much crypto they hold
- Crypto exchanges need to ensure that users can withdraw their funds at any one time
- It is the ultimate stress test and will expose the trustworthy platforms
- Confirm that users are free and independent when it comes to holding their own digital assets
What are your thoughts on HitBTC being suspected of freezing customer accounts ahead of the Proof of Key event? Please let us know in the comment section below.
[Image courtesy of MoneyTalksNews.com]
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.