During the Proof of Keys event on January 3 users transfer cryptocurrency from exchanges to test their solvency.
Approaching the Proof of Keys date, some funds have been frozen by HitBTC exchange, reports CCN. On December 31st, exchange’s reps responded to Reddit’s user complaint, accusing the exchange of ignoring requests to withdraw funds, despite all thorough customer verification that took months.
Other people also mentioned their accounts had been blocked by HitBTC without any reason, whereas customer service simply would not respond. Despite subsequent follow-up and reassurances by company’s representative, traders were not too enthusiastic.
“With the proof of key date approaching, I felt that HitBTC is the prime suspect for being insolvent, so I tried withdrawing my BTC. Guess what, they blocked the withdrawal and froze my account again,” complained one Redditor, PEDXS.
The Proof of Keys event to pull cryptocurrency out of exchanges is a movement started by a prominent bitcoin investor Trace Mayer. The objective of the movement is to detect that whether or not crypto exchanges hold the funds that users have been deposited in the past. The action starts on January 3, at 4pm (GMT).
In the video below Trace Mayer explains the concept behind the Proof of Keys movement.