HitBTC is a fraudulent entity in the eyes of Richard Sanders

Richard Sanders, chief investigator at CipherBlade, claims that HitBTC is “probably the largest fraudulent entity” in the crypto space.

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1 HitBTC does not require identity verification procedures

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Although the platform is touted as one of the major crypto exchanges, Sanders claims the company is insolvent.

In a recent post on Medium, the investigator claims that the only reason the exchange still works is because people don’t make the necessary checks and get cheated.

Sanders said:

“HitBTC is one of many examples of blockchain industry entities that need to be eradicated. It does not matter if this will be done through the consumers’ decision, intervention by the authorities, legal actions or a combination of these. ”

According to Sanders, the crypto exchange could be insolvent because it only deals with user funds. Given that HitBTC is not transparent and has not allowed any audits, its solvency can be estimated based on the number of hot and cold portfolios in relation to the volume.

Bitwise’s report on exchange volumes released earlier this year showed that “the reported HitBTC volumes are almost entirely artificial.”

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Also, the wide range of cryptocurrencies and tokens listed by HitBTC could be attractive to traders. Unfortunately, the platform includes many crypto assets without checking. For example, he listed the Bitconnect token (BCC), one of the largest Ponzi schemes in the crypto space.

HitBTC does not require identity verification procedures

The management team of the exchange is also anonymous, fact justified by the company for security reasons.

HitBTC is the only centralized crypto exchange that does not require customer identity verification procedures. Officially, the platform “encourages” users to submit KYC documents to “avoid any future verification procedure”.

When users submit tickets or request withdrawals, HitBTC delays processes for very long periods, until users quit.

Sanders has called on the crypto community to end the “perfect scam” of HitBTC. In a recent update, the investigator said the exchange panicked as many users withdraw their funds.