HitBTC claims Brazilian startup faked frozen assets evidence

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Cryptocurrency exchange HitBTC has denied claims it had frozen the assets of a Brazilian crypto investment startups, saying the evidence presented by the firm had been faked.

The extraordinary allegations were made against Atlas Quantum, with HitBTC saying publicly it had no records of freezing any assets belonging to the firm.

We cannot confirm the recently published claims by Atlas Quantum regarding HitBTC, as we don't have any blocked accounts with equal or similar balance. Moreover, we haven’t received any official request for assistance from Atlas Quantum team by now.

— HitBTC (@hitbtc) October 2, 2019

Atlas Quantum first made the claims in a video last month, where the firm accused HitBTC of freezing assets worth 1,862 BTC, plus over $5.4 million in Tether, totaling in excess of $20 million.

HitBTC responded to the claims on Twitter with a comment on an Atlas Quantum tweet, which was subsequently deleted by the investment firm, causing further outrage.

Calling out what appeared to be non-standard records shown by Atlas Quantum to justify their claims, HitBTC suggested the evidence they had presented was nothing more than a forgery to fool investors.

Moreover, the HitBTC interface in the video has been forged.

HitBTC has backed up its allegations with comprehensive screenshots demonstrating how the evidence should have looked. At first glance, these appear to back up HitBTC’s version of events, leading to further concerns around the claims made by Atlas Quantum.

Atlas Quantum has yet to issue a statement denying the allegations, despite repeated requests for comment.

While the news seems astonishing, particularly in light of Atlas Quantum’s obligations to investors, it is only the latest case of alleged misrepresentation and fakery in the cryptocurrency sector.

Back in August, two Canadian citizens were found to have been running a crypto fraud in the U.S. through using fake Twitter accounts, brandished with HitBTC logos.

The case serves as an ongoing warning to firms and investors alike to be wary of those they are dealing with in the cryptocurrency industries, with scams and fraudulent activities still waiting for unsuspecting victims.