BTC-e: 100% of users' money is currently lost

BTC-e users’ funds are currently lost, while the exchange blames a third party
31 October 2017   1483

Bitcoin exchange BTC-e has gone offline due to the Alexander Vinnik case in July, 2017. At 25th of July, the FBI agents seized all the equipment from their data center. On Saturday evening, July 29th, all the coins were withdrawn by one transaction. The total withdrawn amount was 485,705.4597502 ETH, which at the current market rate is almost $95 million. A bit later, BTC-e support team reported on having access to its database and wallets. 

Since then, the exchange team has made several announcement via bitcointalk.org concerning its plans for the company’s revival. The exchange also relaunched as World Exchange Services (WEX). Thus, WEX clarified that it did receive digital assets from BTC-e, but not fiat balances or any financial obligations. 

The company has always stated that “funds will be returned to everyone.” However, now two companies tell the users that the other one has their funds.

In particular, the users claim that, earlier this month, WEX started verifying the identity of fiat currency holders to refund them while complying with AML/KYC regulations. The users got an email that told them to contact a third-party that reportedly handled their financial operations and was presumably in control of the funds: a company called Money Polo.

After contacting the company, users were told that Money Polo received their money, and credited it to BTC-e, who may now seemingly be escaping the situation, as it is now WEX, an exchange that claimed not to “buy or accept any financial obligations form ex-BTC-e.”

MoneyPolo
image: cryptocoinsnews.com

In an attempt to get either WEX or Money Polo to further clarify the situation, users have been contacting these two companies in every possible way, but so far have only gotten the same answers.

It’s selective scamming: 1) they scam some clients; 2) the clients complain for awhile; 3) most of them give up after few weeks; 4) easy profit. BTC-e always did this….but now they had the perfect situation to SCAM big money.
 

BTC-e user to cryptocoinsnews.com

The users even believe that BTC-e is selectively scamming some users, so the majority of them eventually give up on their cause after a few weeks. 

In whose hands is the users' money, remains to be seen. 

Binance to Froze WEX Related Accounts

Measures were taken in response to requests from WEX users, who have not been able to withdraw their funds
31 October 2018   490

Binance froze the accounts, which received 93k ETH from the wallets associated with the well-known WEX trading platform. It is reported by CoinDesk.

The accounts were frozen on October 25, but this became known only a few days later from a tweet from the head of Binance Changpen Zhao.

the identified accounts are frozen, please report to law enforcement and have a case number. We will work with LE. This is part of centralization we hate too, dealing with other exchange's mess (we don't even know the details). But we will do what we can.
 

Changpen Zhao at Twitter

Head, Binance

Shortly before this, Twitter-user John James wrote that funds from WEX cold wallets come to Binance, which means that the latter contributes to the laundering of money stolen from users.

Measures were taken in response to requests from WEX users, who have not been able to withdraw their funds for a long time. They managed to track the movement of funds in the Ethereum blockchain and came to the conclusion that the 25 transactions that arrived at Binance from August to October were sent from WEX-related wallets.

Users were concerned that WEX (the successor of the infamous BTC-e)does not offer the possibility of withdrawing funds since July 2018. In October, Russian users turned to law enforcement for help.

According to CoinDesk, “hundreds of WEX users” cannot get their money back, judging by the number of participants in the corresponding Telegram-chats. At the same time, funds at risk are estimated at least $ 18 million.

According to WEX users who applied to Binance, the first transaction at 485 705 ETH was performed on July 29 last year. According to Etherscan, it was produced from a previously owned BTC-e address. From September 2017 through January 2018, another 480,000 ETH were sent via 32 transactions to another WEX wallet, as well as other addresses. After that, funds from one of these addresses gradually entered the wallet of the Binance exchange.

WEX Funds
WEX Funds

Binance spokesperson said that her company always investigates user complaints and suspends access to accounts seen in suspicious activity.

In September last year, the infamous BTC-e exchange restarted on the domain WEX.nz. In April, it became known that WEX paid off 20% of the total amount of debt obligations of the BTC-e platform.

After some time, cryptocurrencies on WEX began to trade at a price much higher than average. However, anxiety among users has increased even more when it became known that the ex-militant of "DPR" Dmitry Khavchenko was going to buy the exchange.