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Cointelligence Report: HitBTC Funds Supposedly Are About $ 3 Mln Only

24 May 2019 12:34, UTC
Cointelligence Report: HitBTC Funds Supposedly Are About $ 3 Mln Only

HitBTC cryptocurrency exchange increasingly appears in quite negative news. It all started with the difficulties of withdrawing funds from the exchange; many users wrote and complained about this situation. It is likely that this has reasons: in its new report, the R&A company Cointelligence believes that the crypto exchange may be insolvent.

Cointelligence analysts compared some of HitBTC statistics with other leading exchanges, and one of the key findings is that HitBTC has only about $3 mln in BTC and ETH in its wallets.

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The study compares the number of BTC and ETH stored in the wallets of the exchange with the daily trading volume. The most suspicious indicator is that trading volume is likely to be false. For example, the Kraken exchange possesses 413 times more BTC and 585 times more ETH, and respectively has a smaller trading volume than HitBTC.

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The report also stresses an extremely high fee for withdrawing funds and the lack of information about who actually controls the company. An anonymous team is indicated as the main threat to users, because the exchange can simply disappear without any consequences. As a result, the report strongly recommends not keeping money on HitBTC until the company deanonimizes the exchange managers, and also proves that it has reserves of more than $3 mln.

Image courtesy of Disruptblock



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