The prominent cryptocurrency exchange platform, Bittrex, has been at the receiving end of a slew of accusations in the past few weeks. Evidence has surfaced on a Russian Telegram channel which claiming that the exchange accidentally sent sensitive data of several of its users, such as passport documentation, to an unsuspecting user. In addition, several traders based in Iran have recently voiced complaints that Bittrex has locked them out of their accounts. Moreover, a certain notorious cryptocurrency market-manipulator claimed that his profits made from "pump and dump" scams on Bittrex allowed him to buy a brand new Tesla.
Recently, a user of a Russian Telegram channel stated that Bittrex sent them sensitive information of several users, such as passport documentation. These users had sent the information to Bittrex in order to comply with KYC requirements. The user who received the unwanted information was also seeking KYC verification at the time. The user claimed that they received the unsolicited data in an email which also stated that their submitted documents for KYC verification had not been approved. The user received their own documents as well as the documents of other users.
In response to this incident, the firm stated that this was an isolated event which does not compromise the firm's general commitment to user privacy. The firm explained that the user in question was accidentally forwarded a small number of documents after all documents merged into a single support ticket. After the incident, the firm ensured that the documents were removed from the user's possession and that no other unauthorized user could access the documents. In addition, the firm notified the affected users and offered them identity theft protection for a period of 24 months.
However, this is only one issue in a growing list of accusations.
Several Iran-based Bittrex traders have recently voiced grievances over the fact that Bittrex has locked them out of their accounts. While the move is likely due to US-imposed sanctions on the country, the exchange did not allow the traders to withdraw their funds first.
According to a representative of Lioncomputer, Yasser Ahmadi, the traders have been experiencing issues with the exchange for the last two years. While other exchanges, such as Bitfinex and Poloniex, warned Iranian traders to withdraw their funds, Bittrex simply blocked users without notice or warning. The exchange has been locking Iranian users out of their accounts since mid-October, and simply failed to respond to the hordes of support tickets and emails from affected users.
According to Ahmadi, the fact that the US is trying to impose sanctions on a country's ability to participate in the cryptocurrency industry undermines the very values of cryptocurrency. Currently, the US is using bitcoin as a means to serve their own political interest. This is something which completely flies in the face of blockchain ideology.
Lastly, a Belgium trader has admitted to using Bittrex for their market manipulation scams. The trader admitted to having used media outlets to facilitate several "pump and dump" scams on the platform. According to the anonymous trader, they are responsible for a Telegram channel dedicated to orchestrating "pump and dump" scams all over the world. The user also noted that so far, the scams have raked in close to a million dollars and enabled him to recently purchase a Tesla.
The firm has already taken steps to warn its users about market manipulation scams. Towards the end of November, Bittrex released an official statement warning users that anyone caught participating in any market manipulating activity will be suspended and handed over to the relevant authorities.
Recently, a user of a Russian Telegram channel stated that Bittrex sent them sensitive information of several users, such as passport documentation. These users had sent the information to Bittrex in order to comply with KYC requirements. The user who received the unwanted information was also seeking KYC verification at the time. The user claimed that they received the unsolicited data in an email which also stated that their submitted documents for KYC verification had not been approved. The user received their own documents as well as the documents of other users.
In response to this incident, the firm stated that this was an isolated event which does not compromise the firm's general commitment to user privacy. The firm explained that the user in question was accidentally forwarded a small number of documents after all documents merged into a single support ticket. After the incident, the firm ensured that the documents were removed from the user's possession and that no other unauthorized user could access the documents. In addition, the firm notified the affected users and offered them identity theft protection for a period of 24 months.
However, this is only one issue in a growing list of accusations.
Several Iran-based Bittrex traders have recently voiced grievances over the fact that Bittrex has locked them out of their accounts. While the move is likely due to US-imposed sanctions on the country, the exchange did not allow the traders to withdraw their funds first.
According to a representative of Lioncomputer, Yasser Ahmadi, the traders have been experiencing issues with the exchange for the last two years. While other exchanges, such as Bitfinex and Poloniex, warned Iranian traders to withdraw their funds, Bittrex simply blocked users without notice or warning. The exchange has been locking Iranian users out of their accounts since mid-October, and simply failed to respond to the hordes of support tickets and emails from affected users.
According to Ahmadi, the fact that the US is trying to impose sanctions on a country's ability to participate in the cryptocurrency industry undermines the very values of cryptocurrency. Currently, the US is using bitcoin as a means to serve their own political interest. This is something which completely flies in the face of blockchain ideology.
Lastly, a Belgium trader has admitted to using Bittrex for their market manipulation scams. The trader admitted to having used media outlets to facilitate several "pump and dump" scams on the platform. According to the anonymous trader, they are responsible for a Telegram channel dedicated to orchestrating "pump and dump" scams all over the world. The user also noted that so far, the scams have raked in close to a million dollars and enabled him to recently purchase a Tesla.
The firm has already taken steps to warn its users about market manipulation scams. Towards the end of November, Bittrex released an official statement warning users that anyone caught participating in any market manipulating activity will be suspended and handed over to the relevant authorities.