Coin Redistribution Roadmap
Over these days we have received many complaints and inquiries from traders in connection with the January 1 incident (https://bitebtc.com/news/20), but we are not yet able to answer each one personally, although we are doing everything possible for this.
In this regard, we will report the news on the website bitebtc.com and in our official Twitter account @bitebtccom.
Unfortunately, we have to admit that our specialists failed to recover part of the data from September 4, 2018 to January 1, 2019, including trades, deposits, withdrawals, orders and some other information.
At the same time, the coins and tokens were almost completely preserved, since stored on external servers, including cold storage.
It is easy to check for the lack of movement in the wallets used for deposits - coins on them have not moved since Dec 2018.
We received thousands of inquiries from traders for a refund indicating the deposit transactions, but almost no one reported about withdrawals received. At the same time, the volume of withdrawals from new accounts who have suffered the most is about 85% of the volume of deposits (traders often check the new exchange and do not trust it with their funds for storage).
In addition, traders who know the addresses of our hot wallets, could give someone else's transaction for their own. Of course, there is a signature mechanism, but it is not available in all blockchains, so it’s also impossible to rely on this method to prove your deposit. We have already made demands for a refund on foreign transactions.
It is also important to note that often traders exchanged one coin and another, i.e. the deposit was recorded in one blockchain, and the withdrawal was recorded in another.
In this case, the exchange rate could have changed and we can not check whether the exchange exactly occurred at the stated rate.
At the same time, a large amount of various coins are still kept in our cold wallets, some of which are not even subject to evaluation due to their low liquidity, and some of them were traded only on BiteBTC in general.
We intend to return these funds to traders and not to limit them in the withdrawal of coins from BiteBTC exchange.
In this regard, we have developed a Coin Redistribution Roadmap:
1. Every trader applying for unallocated coins must check access to his account. If the account is unavailable, blocked or does not exist, you should register it again and submit the same documents for passing KYC that were submitted the previous time.
After successful registration and authorization to the account, it is recommended to set 2FA to increase the security of trader's account.
2. The trader should fill out a form for each deposit and withdrawal, which he carried out at BiteBTC with indication of txid, amount, sender address and receiver address (this is relevant for private blockchains): Coin Redistribution Request
This data will be checked in semi-manual mode to limit fraud attempts.
Applications will be accepted until January 31, 2019.
3. After collecting and processing all the data, as well as comparisons with the current balances of the wallets at the time of the incident, all the coins will be distributed proportionally among the traders who have submitted bids within the specified period.
For example, if the BTC deposit forms were received in total of 100 BTC, the withdrawal forms were received in total of 80 BTC, the unallocated balance as of January 1 was 20 BTC, then all 20 BTC will be distributed among the traders in full.
Another example: if the ETH deposit forms were received for a total of 1000 ETH, the withdrawal forms were received in total of 500 ETH, the unallocated balance was 400 ETH, then all applications will be satisfied at 80% (400/500 = 0.8).
All unallocated funds in sufficient volume will be distributed by running the Airdrop campaigns for free distribution of the remaining coins.