HitBTC slams Bitcoin Private [BTCP] fraud allegations

HitBTC slams Bitcoin Private [BTCP] fraud allegations

Crypto exchange HitBTC has responded to Bitcoin Private [BTCP]’s fraud allegations. Bitcoin Private accused the crypto exchange of fraud after it delisted BTCP following a scheduled coinburn. 

HitBTC delisted the coin indicating that Bitcoin Private didn’t give the exchange a “reliable secure instrument to move the funds from the SegWit addresses before the hard fork”. The exchange said that it couldn’t move the BTCP coins to the new addresses prior to coinburn.

Bitcoin Private on behalf of the community sent a legal letter alleging that HitBTC attempted to extort BTCP by choosing not to support the hard fork. It indicated that HitBTC was informed in advance about the coinburn but ignored the coinburn until the last minute.

HitBTC has slammed the Bitcoin Private allegation saying that the company asked the exchange to create a BTCP wallet and transfer the private keys to the wallet so that the user’s coins remains unaffected by the transfer.

However, HitBTC indicated that transferring private keys was against its protocol. “We use two different types of custody: top-tier security (for the main 10 currencies and all the ETH tokens) and regular for other currencies. Top-tier security custody is based on HDKey technology. For security reasons, we will not compromise the integrity of private keys in our top-tier custody and it is prohibited by our internal security policies to derive and export private keys from HDKey,” explained HitBTC.

“The BTCP developers created custodial risk and ecosystem instability for us, its partner exchange. This led us to make the decision to stop deposits and trading of the asset,” confessed the crypto exchange.  

Image via Shutterstock

HitBTC slams Bitcoin Private [BTCP] fraud allegations
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