But unfortunately some exchanges such as HitBTC and Bittrex are using that as an excuse to freeze their users account because they claim they had detected some suspicious activity while as a matter of fact they just need some extra funds on the side, so what they do is they just start randomly asking their users for KYC when their balance is high enough that is worth the effort for them, and if the users accepts and do KYC verification they will just unfreeze the account since now they have some KYC information to sell on black market(in some cases they might even go further and ask for documents including source of funds after passing KYC), but if the users refuse to do so, they get to have the whole balance of their account for themselves.
At the end of the day if you registered for an exchange and accepted their TOS and then while using that exchange they suddenly asked you to complete KYC, I guess more than anything else it's your fault.
These are very heavy accusations. Do you happen to have indisputable evidences which support this?
I used to be a fan of Bittrex during its heyday. I used to trade on HitBTC as well during the good old days of ICO. There were times when my accounts' balance on both exchanges would reach a significant amount, but never had I encountered something negative which I would consider very serious from both platforms. While I experienced what others have gone through with HitBTC, that is, a sudden KYC requirement, it was only during the time when I already detached myself from them and only left a very small amount. But even with that, I got quickly approved and allowed to withdraw my funds.
Make no mistake, I am also very much aware of a lot of complaints against both exchanges, especially with HitBTC.
For sure those are only observations if he dont have actually had the experience on using those exchange or simply do see those issues that floating around and tell up some stories about
KYC selling in some markets or do make out some intentional shady asking out KYC for the purpose of locking out users account.
Well, there are no evidences for this one but if you do base up on how things works and what are the possibilities that could happen then we can really presume that
it might be happening behind the curtains.
So does simply mean that its better to stick out with the best ones to avoid some headaches.
