Bitcoin Private’s Team Accuses HitBTC of Fraud
Bitcoin Private is one of the many Bitcoin forks that occurred in 2018. As its name suggests, it focuses on higher standards of user anonymity. So far, the altcoin has lost most of its value and is now embroiled in controversy with the popular exchange, HitBTC.
In the Bitcoin Private whitepaper, there was a mention of a scheduled "coinburn". The Bitcoin Private team was due to delete (or "burn") all the coins which haven't been claimed or moved to a different address since the fork occurred.
HitBTC announced in a blog post that they have decided to remove Bitcoin Private from their listings due to the coinburn.
"The decision to disintegrate Bitcoin Private (BTCP) coin from HitBTC platform was made after we've determined project's incapability to protect its blockchain users and partners from the consequences of the arguable Coin Burn decision. Our team reached out to BTCP developers team with a request to help moving BTCP coins from a wallet that would not be safeguarded from a coin burn, however they could not provide us a reliable secure instrument to move the funds from the segwit addresses before the hard fork, which resulted in them burning a part of the funds still remaining in our custody. Never in the history of our platform our users have lost the funds kept in our custody and this is the practice we don't ever want to disrupt. Therefore HitBTC has compensated all the custody losses. This situation is a good example of how important it is not to change the rules in existing blockchains if those changes can have a negative impact on the users."
Bitcoin Private's team quickly made it to Twitter for a response and accused HitBTC of fraudulent activity.
In the legal letter attached, The BTCP team claim that they have paid, $0.5M in Bitcoin to be listed on HitBTC. Moreover, HitBTC is demanding compensation for the coinburn.
The Bottom Line
The Bitcoin Private team might be right, as the coinburn was written in their whitepaper and announced on social media. Despite that, any dispute with exchanges is an ugly thing and negatively affects the value of a cryptocurrency. HitBTC was the highest profile exchange Bitcoin Private was listed on. The delisting will most likely have dire consequences to the small altcoin. One can now expect that unless things change, Bitcoin Private will slowly go the way of dead Bitcoin forks, like Bitcoin Classic.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado