Cryptocurrency exchange HitBTC can’t get enough of the news at the moment, unfortunately it appears to be for all the wrong reasons.
A recent deep dive into cryptocurrency wallets belonging to HitBTC show that the exchange could in fact be insolvent. HitBTC has been awash with rumors of exit scamming and insolvency after users report difficulties in withdrawing funds from the exchange, increased KYC/AML procedures and support delays.
Cointelligence recently submitted their findings on HitBTC, comparing some of the statistics to other top cryptocurrency exchanges, one of the key takeaways from the research report, was that HitBTC only has roughly $3 million in BTC and ETH stored in their wallets.
The research compares the amount of BTC and ETH held in the exchanges wallet, and compares that to the daily trading volume.
The most notable issues that can be seen is the trading volume, which is all most likely fake. Compared to some of the other top exchanges such as Kraken who hold 413x more BTC, and 585x more ETH, yet had far less trading volume that HitBTC.
The report also sights extremely high withdrawal fees as well as no knowledge of who actually runs the company. The anonymous team is signaled as a major ref flag for users as the exchange can simply disappear with no repercussions to the owners.
It would be highly advisable to avoid using HitBTC until the company reveals who runs the exchange, as well as proving that they actually have more than $3 million in funds only.