Shout-Out to itBit Closing My User Account

Shout-Out to itBit Closing My User Account

I both love and hate itBit. When I first was learning about Bitcoin, itBit was my first exchange. It had everything to get started: phone support, the ability to create a wallet, and a simple interface to trade directly against the US and Singapore dollar. They had zero withdrawal fees and only if one traded on their platform.

However, they hate it if you trade too much or too little. In my case, I traded too little. Twice in one year they sent me this questionnaire:

From time to time, we ask clients to provide additional information on their account activity. This annual review helps ensure our bitcoin trading services and community of traders are secure.

Please reply back to this email with responses for the following questions:

1) What is the source of funds for your account? Please provide, in detail, how the source of funds is generated. For example, if the account is funded by BitCoin, please indicate how and where the BitCoin deposits were sourced. If the account is funded by USD, please indicate source of funds for the USD deposits.

2) Please provide the name and location of your employer, your title/position and a description of your occupation.

3) Please provide your annual salary.

4) What is the purpose of your itBit Account?

5) If you are a trader, please provide us with a description of your trading strategy.

6) If you trade on other bitcoin exchanges, please provide us with their names.

7) What third party bitcoin wallets do you use?

8) What is your estimated monthly trading volume on our platform? (Please provide in USD per month)

All this info can and will be used against you. My purpose was for trading but I know of others that have used it for other purposes, which itBit closed down user accounts.

The last straw happened when I transferred a larger than normal amount of Bitcoin to itBit in order to upgrade a hardware wallet (but was unsure that the funds would remain after the upgrade):

From time to time, we will ask our clients questions to ascertain the nature of their activity. We do this to ensure the safety and security of our trading platform. We would like some further information regarding your activity:

1. We noticed several Bitcoin deposits recently, with minimal trading activity, and followed by subsequent Bitcoin withdrawals. Could you please provide a reason for the transaction activity.

2. Please provide any update to your client profile (e.g., occupation, salary, purpose of account) since the last correspondence regarding your client profile, if necessary.

Thank you.

Two months later they closed down my account. When I replied “why?” I received no response:

After a review of your account, we will not be able to maintain an account for you. Please submit a withdrawal request for the remaining balances that you have. On [three days later], we will close the account, so please initiate the withdrawal requests as soon as possible. In the meantime, please do not trade on our platform.

itBit Support

Seriously, just because I did minimal trading activity itBit closes my account. For legal reasons I reserve comment, but am merely publicizing the facts in terms of how itBit conducts its business towards some of their clients.

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