One of the largest crypto exchanges out there, Bittrex has had some major issues in the last weeks. It has been pointed out by a Russian Telegram channel that one of Bittrex’s customers was mistakenly forwarded documentation and sensitive data for user of the platform in an email generated by Bittrex. Also, accounts of Iranian users’ have been blocked, therefore making the funds inaccessible. And problems do not end there for Bittrex, as one of its clients confesses to have gained a lot of profit by conducting altcoin pumps and dumps on the platform.
Bittrex accidentally leaks KYC data
A customer that sought KYC verification for setting up an account with Bittrex has claimed that he has been sent other users’ data from the completed KYC requirements. He goes on to say that the received data was sent to him in an email by the exchange, specifying that his own KYC verification has been rejected. He wrote that “Do you want to see something insane? Bittrex mixed up its manual user verification of accounts. Right now, I am seeing the passport of one Nourbek, and his selfie,” also providing a screenshot of the forwarded mail.
Bittrex has responded to the incident by stating: “Bittrex takes user privacy very seriously. We quickly moved to address this isolated incident in which a small handful of user documents were inadvertently merged together into one support ticket. Bittrex took steps to ensure that the erroneous documents were removed from being viewable within the support site, and we plan to reach out to the affected users and offer to pay for identity theft protection for 2 years.”
Iranian traders are blocked from the exchange
Iranian traders claim that their accounts have been blocked as a result of the sanctions imposed by U.S. and were left with no way to access or recuperate their funds.
“We’re having difficulties for a long time now, it started around two years ago. Poloniex and Bitfinex announced that Iranian users should withdraw their funds and leave the exchange and now we’re having trouble with Bittrex. Bittrex started closing Iranian accounts without any heads up or announcements from Oct 12 and haven’t responded to our support tickets and emails since,” said Yasser Ahmadi of Lioncomputer.
He goes on saying that “I think Bitcoin should not be limited by the regulation process and that’s exactly what the United States is doing. They’re using the fluidity of bitcoin to control the needs of people around the world and reach their own political interests – that is not what bitcoin and blockchain is about, it’s against the spirit of this system.”
Trader reveals involvement in pump and dumps
A trader revealed that he has been using Bittrex for “market manipulation” and that he has been conducting pump and dumps on a Telegram-based group. He estimates that he has made “hundreds of thousands” in profit, bought a Tesla and paid a house deposit through his actions on Bittrex.
Bittrex has issued a statement that warns traders involved with pump groups, which says “Bittrex actively discourages any type of market manipulation, including pump groups. Consistent with our terms of service, we will suspend and close any accounts engaging in this type of activity and notify the appropriate authorities.”