Bitcoin Private send HitBTC legal letter after "unjustifiable" delisting

10 Mar, 2019 | Updated: 10 Mar, 2019
by Will Heasman
Bitcoin Private send HitBTC legal letter after unjustifiable delisting

Following the desisting of bitcoin Private (BTCP) from the HitBTC exchange, the BTCP team sent a cease and desist letter to the exchange, for what the team calls “unjustifiable” delisting.

A decision from HitBTC to delist BTCP was justified by the exchange in a blog post yesterday, with the firm citing an “incapability to protect its blockchain users and partners from the consequences of the arguable Coin Burn decision”

BTCP initiated the coinburn on the 16th of February, at a block height of 480,000. The burn took place in order to obtain a “true picture on the circulating supply of BTCP,” following the uncovering of 2 million BTCP which were covertly mined back in 2018.

Prior to the coinburn, BTCP developers announced that any BTCP would be burned away unless it had been transferred to a new address and therefore, “claimed”:

And this is the crux of HitBTC’s argument for delisting. The exchange alleges that the BTCP team didn’t respond to requests for help to move BTCP, from “a wallet that would not be safeguarded from a coin burn,” resulting in the loss of 58,920 BTCP in exchange’s custody.

“Never in the history of our platform our users have lost the funds kept in our custody and this is the practice we don’t ever want to disrupt. Therefore, HitBTC has compensated all the custody losses.” Read an official HitBTC statement.

In response, a “legal letter” was sent from BTCP to HitBTC addressing the delisting and the surrounding circumstances.

The letter relays that only on the eve of the coinburn did HitBTC reach out for help, despite numerous calls to action from BTCP developers urging users to move their BTCP prior to the coinburn.

The letter continues to state that BTCP developers “immediately” contacted HitBTC to offer assistance. 

However, according to the letter, HitBTC allegedly responded saying that they couldn’t move BTCP from old addresses due to "security reasons,” leading the exchange to apparently request compensation for the imminent loss of BTCP. 

The letter concludes by asking HitBTC to “cease and desist” demands for compensation:

“we respectfully request that you immediately cease and desist any and all unwarranted demands for compensation— compensation for which you have no legal right to claim,” the letter reads.

As it stands, HitBTC has delisted BTCP and are yet to respond to the letter.

What do you think about the delisting and call for compensation? Let us know in the comments below!

Read more: Rumors continue to swirl about HitBTC insolvency as withdrawal issues continue

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