False. Many users report giving all the requested data and still not receiving their money.
Besides, the KYC/AML procedure is invoked for even the smallest of amounts, like $50. This is not a practice focused on security. It's simply scamming, stalling and as mentioned above, possibly even identity theft.
HitBTC has never even tried to prove the IDs/documents are secured and the KYC requests are in any meaningful way justified. It's clear from all the complaints that a lot of users were directly harmed by the exchange and its affiliates. HitBTC is an unscrupulous and shady exchange. Avoid it like a plague.
Security precautions taken by HitBTC in the verification process are designed to prevent international money laundering and fraudulent schemes, which is a common practice for a financial institution. Most traders have absolutely no trouble passing the KYC.
Why are the complaints piling up? Why were these complaints not happening a couple of years ago at this pace? HitBTC has only itself to blame for its demise and disastrous reputation.
It is a trend commonly used by exchanges to freeze accounts under the guise of false pretexts ("KYC", "unusual activity", "hack"... ) just to steal user funds or just to buy time so they can get the funds in place and then un-block the user account again.