In a Saturday tweet linking to a legal notice sent to HitBTC on February 26, the Bitcoin Private (BTCP) team revealed that they paid an astonishing $500,000 to earn a listing on HitBTC, just to be delisted less than a year later.
Dear #BTCP community – please read the legal letter below, that uncovers @hitbtc and their questionable, unjustifiable reasoning behind the removal of Bitcoin Private from their exchange. https://t.co/Bp4Yjqp4Ez
— Bitcoin Private [BTCP] (@bitcoinprivate) March 9, 2019
In a response that touts the exchange’s custodial prowess, HitBTC claimed the Bitcoin Private delisting was the result of complications arising from a planned coin burn that occurred one day after it was forecasted (February 17).
“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,” said HitBTC. “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.”
The Petros Law Group letter sent to HitBTC in February alleges that the exchange threatened to pull support if the Bitcoin Private team didn’t compensate them 58,920 BTCP. While HitBTC claimed this was the value of customer funds lost during the coin burn, the Bitcoin Private team alleges it was actually the exchange’s personal funds.
HitBTC claims that it has compensated all of its customer’s alleged losses and has officially delisted BTCP from its platform, allowing users ample time to transfer their funds.
Related: AltDex Privacy Coin Index
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.