Twitch’s Bit System Under Scrutiny as Turkish Police Uncover Money Laundering Scheme
Viewers on Twitch have various ways to support their favorite streamers, such as subscriptions, donations, and bits. However, bits have recently faced backlash following the discovery of a massive money-laundering operation in Turkey involving the micro currency exclusive to Twitch.
On Feb. 3, popular Minecrafter streamer Verloren reported suspicious donations to his channel in the form of bits. The donation, which amounted to 120,000 bits or $1,200 USD, was made off-stream by a user. Concerned about potential chargebacks, Verloren reached out to Twitch support, requesting a freeze on his account to verify the legitimacy of the donation.
In response, Twitch support assured Verloren that his account had been restored to normal. The fraudulent payment was removed, and the funds were unfrozen. However, Verloren noticed that his channel’s gifted subscription and bit leaderboards were missing, leading to further communication with Twitch support.
In a subsequent email exchange, Twitch support informed Verloren that his channel’s ability to receive bit donations was revoked. The email explained that his channel had been flagged for violating Twitch’s terms of service and stated that Twitch reserves the right to terminate access to its products at any time.
The handling of Verloren’s situation by Twitch has received criticism, with many arguing that this response discourages users from reporting fraudulent activity. As of now, Twitch has not provided a response, which aligns with the platform’s tendency to remain silent on bans and suspensions. Verloren and his viewers, however, remain hopeful for a resolution.