Investigator Claims HitBTC Is The ‘Largest Scale Fraudulent Entity’

CipherTrace’s Richard Sanders, the lead investigator claims that HitBTC is the “longest-running and potentially largest scale criminally fraudulent entity” currently in the cryptocurrency sphere and we are about to find out why in the blockchain latest news below.

Although HitBTC advertises itself as the best crypto exchange in the market, the investigator claims that the company suffers from insolvency. In the new Medium post, Richard Sanders claims that the reason why the exchange company is alive at this moment is that they have managed to camouflage themselves very well while in our time people don’t perform due diligence in a proper manner. Sanders outlined in the report:

”HitBTC is one of many examples of entities in the blockchain industry that must be eradicated, whether via being made irrelevant by consumer decisions, intervention from authorities, legal action, or some combination thereof.”

HitBTC also was accused of being a con exchange by John McAfee and Trace Mayer along with the many other analysts and crypto enthusiasts. The accusations arrived when the exchange company froze withdrawals in the first trimester of the year. According to the lead investigator Richard Sanders, the company could be insolvent because the trading was done with the funds of the customers. Having in mind that HitBTC is not transparent and audits were not permitted at all by the company, we can estimate its solvency on the basis of the number of hot and cold wallets in relation to the volume.

Calculating on this metric, the volume of the company is too big in comparison to its Bitcoin (BTC) reserves. There are other exchange companies that accepted third-party audits and proved to be solvent. The reason HitBTC will never allow an audit is because the outcome will destroy its legitimacy. One of the sources of the insolvency is the uneconomical fund management of the top people of HitBTC that is seen by its lavish lifestyles. Sanders declares:

“In reality, the HitBTC team is anonymous because when (not if) the day of reckoning comes — whether that is being insolvent to a level they can’t continue the selective scam charade or it is action from authorities — nobody is willing to put their identity behind a fraudulent operation”