Bittrex Customers Locked Out: Are Crypto Exchanges Ready for Bitcoin?
Bittrex users took to social media to voice their concerns: something is wrong at the third largest cryptocurrency exchange in the world. Customers openly complain they’re having issues with withdrawals, and this has been going on for weeks. Certainly every popular platform has had its share of problems with runs in the wake of price spikes, but until yesterday the exchange offered no formal, public explanation.
Also read: Peer-to-Peer Bitcoiner Gets Year in Prison for Being Unlicensed
Bittrex Has a Public Relations Problem
Bittrex hasn’t Tweeted since 30 November. Its Facebook page hasn’t been updated since Summer. Customers are starting to worry, loudly.
Important Information About Identity Verification, published the evening of 5 December, the exchange explained, “We are committed to making sure our services are not used to launder money, support terrorism, commit fraud or other illegal activities,” citing the Bank Secrecy Act and other regulations as catalyst.
Describing their services as “frustrating or a hassle,” the exchange blamed, essentially, lack of customer literacy in the identity verification process. Stressing they “cannot do this without the help of our customers,” the post then lists “common mistakes or issues that arise.”
Included are problems such as “Creating multiple accounts associated with a single individual or entity; Name mismatch; Unreadable IDs; Non-Latin characters on the Government IDs; [and] Opening multiple support tickets.”
Signed by The Team, the post ends: “We trust that you understand Bittrex is committed to following the law and ensuring that it has a robust compliance program. We ask for your patience and cooperation throughout this process.”
So, Criminals can Deposit but Not Withdraw?
Curious to outsiders, infuriating to customers, is the notion of the exchange taking orders, money, seemingly without issue … only to cover itself in cloaks of legalisms at withdrawal time.
Indeed, a user told Business Insider how “This is a big deal because when you sign up with Bittrex, they allow you to deposit funds into your wallet and even allow you to trade without Verification. But then you cannot withdraw your funds.”
The exchange has been around since 2014, and is based in Las Vegas though its mailing address is Seattle. Its daily trading volumes hover near 1 billion USD. As of this writing, it ranks second in daily volume among exchanges.
Though not Better Business Bureau (BBB) accredited, Bittrex nevertheless has a dedicated page of mounting complaints. Users have gone public with their stories, and most have documented something like the following, “Last night I tried to withdraw and got this: ‘Unverified account withdraw limit has been reached. Please try again in 24 hours. To increase your limits, please verify your account,'” Russia Today noted. There’s even a Twitter hashtag, #BittrexTrouble.
These are not the first problems for Bittrex, nor are they alone in this regard. Bitcoin’s price, as well as the value of the crypto space generally, has risen beyond expectations. It could just be the case of not being prepared. In these pages, flashes and run-ups were reported at Kraken, Coinbase, Tether, Gemini, among others.
Problems like these are not only worrisome for those unable to access their funds, but they’re also excuses for tighter government controls and regulations. With Wall Street and assorted whales headed crypto’s way in the coming months, readers can be sure such problems will not be tolerated.
As a matter of plain justice, however, in a volatile market, losing precious seconds, much less weeks or months, could literally financially break enthusiasts.
What do you think about exchanges refusing user withdrawals? Tell us in the comments below.
Images via Pixabay, Bittrex.
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