In any case, what this might also cause is that it might expose some exchanges to be running a fractional reserve. Signifying, that they might not have the bitcoins to accomodate all withdrawals hehehe.
HitBTC, a popular cryptocurrency exchange, has been accused of freezing withdrawals for many of its customer’s accounts. The withdrawals reportedly took place just days before the much-anticipated Proof of Keys event, where cryptocurrency investors are prompted to remove all of their assets from third-party platforms to take control of their private keys.
According to multiple sources on Reddit, HitBTC’s account suspensions began on December 31, 2018, when a user by the name of PEDXS had his account frozen. The user claimed HitBTC repeatedly denied his request to withdraw his altcoin holdings despite completing all of the required KYC tests. And while he eventually regained control of his account, the exchange failed to provide an explanation.
Another user took to Reddit to complain about the “withdrawal rejections” he faced on the exchange, saying that he never had his funds locked without warning before. The user explained that customer support was initially fast to respond but quickly disappeared once they were faced with tough questions about the withdrawals.
Since then, numerous testimonies have popped up on social media where users voiced their concerns about the exchange’s practice of freezing withdrawals. Users have also become suspicious about the timing of the event, saying that these “roadblocks” could be a part of HitBTC’s plan to prevent withdrawals during the Proof of Keys event.
However, some experts have argued that HitBTC hs been behind on withdrawals and indiscriminately freezing accounts for months and that the fact it happened just before the Proof of Keys event was nothing more than a coincidence.
Read in full https://btcmanager.com/hitbtc-freezes-customer-accounts-proof-keys-event/