BTC-e unveils a plan for repaying debts to customers

BTC-e exchange has published a plan for repaying debts to its customers
09 August 2017   2357

Bitcoin exchange BTC-e has gone offline more than two weeks ago. 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 On Saturday evening, July 29th, all the coins were withdrawn by one transaction. The total withdrawn amount was 485,705.4597502 ETH, which at the current market rate is almost $95 million.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.

Now, the BTC-e team has published a plan, according to which debts are to be paid to their customers.

According to the team, for the last 14 days they have been engaged with fighting for their customers'funds. Thus, BTC-e managed to gain control over 55% of the funds (depending on the course), while the remaining 45% are arrested (mostly in Fiat). As the arrest is withdrawn from the accounts, the amount will decrease, the company details.

As BTC-e reports, the way out of the current situation is seen to be as follows:

  • It is not possible to continue working under the current BTC-e brand due to unresolved issues from the Office of Financial Crimes of the US Treasury.
  • At the moment, BTC-e is negotiating with a group of investors (an investment company) about buying and the launch of the service to repay debts to the customers. 
  • BTC-e will recalculate the balance sheets after the transfer of all the balance sheets to the investment company.
  • Taking into account the available 55% of funds, the conversion procedure will be held like this:
    - All Fiat liabilities (USD, EUR, RUR) will be transferred to BTE tokens (1 BTE is 1 USD) at the exchange rate on the conversion date. Probably, there also will be an ICO on BTE tokens.
    - If you have coins on the balance, then you will be written off 45% of the balance of coins and credited with 45% of BTE (1 BTE is 1 USD). Again, at the exchange rate on the day of conversion.
    - If you have a balance in BTE, then you will be credited with 45% in coins (the amount will be divided into 7 different coins equally: BTC, LTC, NMC, NVC, PPC, ETH, DSH) and write off the amount of 45% in BTE.
    - Thus, after all recalculations, all users will have the opportunity to withdraw 55% of their funds from the system.
  • Due to the fact that the investment company works in compliance with KYC, AML and with the licenses required for this activity, all users will need to undergo the verification.
  • The launch's estimated date is the end of August.

The exchange also claims that all the debt obligations will be paid primarily from operating income from the investment company's commission, as well as from the funds BTC-e plans to sue from those who illegally arrested them.

All the funds that were in the reserve fund (including all BTC-e income) were transferred to pay off the debts.

BTC-e team

According to the team, the next update will provide users with more details on the procedure for accessing information on the balance sheet and the possibility of funds withdrawing.

BTC Invesment Profitability to Exceed Traditional Assets

This conclusion was made by Binance Research team in study "What Bear Market?"; since begining of the year the BTC has grown by more than 50%, while oil by 33%
08 May 2019   320

Since the beginning of the year, Bitcoin has grown faster than traditional market assets, including oil, technology companies, real estate and gold. This conclusion was made by Binance Research in the new study "What Bear Market?"

Since the beginning of the year, the price of Bitcoin has grown by more than 50%, while oil - by 33%, tech stocks - by 18%. The price of gold in five months slipped by 1%.

Recently, however, some factors have emerged that may put pressure on the price of Bitcoin. Thus, the recovery of BTC growth slowed down somewhat amid news of a hacker attack on the popular Binance exchange itself, as a result of which 7,000 BTC ($ 40.5 million) were stolen.

Another potentially negative factor for the price of Bitcoin could be the upcoming IEO of the Bitfinex exchange, where Tether stablecoins will be used to purchase LEO tokens for $ 1 billion. It can lead to situation when large players can may actively sell BTC.