BTC-e, the cryptocurrency exchange that was seized by US law enforcement agencies, along with all client funds, over money laundering suspicions, has promised to return the funds to its clients.
In a publication in the Russian-language section of the bitcointalk.org forum, BTC-e finally revealed what transpired from July 25 onwards. According to the publication, on July 25 the FBI seized the servers with the data bases and the client wallets and on July 28 took over the domain as well. Currently, part of the funds are also being held by the authorities.
The exchange claims that for six days its representatives did not know what was happening and this is why it took them so long to explain the situation.
BTC-e promises to provide information on whether it will be able to re-start operations and if not, what the refunding procedure will be. “Within the next couple of weeks we will publish information about what part of the funds was seized by FBI and what sum can be refunded. Everyone will be refunded”, the exchange said.
As for the arrested Alexander Vinnik, BTC-e officially says the it has never been a manager or employee of the exchange.
We remind you that BTC-e, one of the major and longest existing bitcoin exchanges went offline last week. For days it was displaying a technical maintenance message, until over the weekend the message was changed with a notice that the site was seized by US law enforcement agencies. Meanwhile, the Russian Alexander Vinnik was arrested in Greece and indicted by a US Grand Jury for the laundering of $4 billion of ill-gotten gains through the BTC-e platform, of which it allegedly is the owner or chief administrator.
BTC-e was one of the major bitcoin exchanges and used to handle around 2.5% of all Bitcoin exchange volume.
In addition to the standard trading of bitcoin, as well as litecoin, namecoin, novacoin, peercoin, dash and ethereum and US Dollar, euro and Russian ruble, BTC-e offers “bitcoin betting” which appears to be some sort of a binary option on the Bitcoin and PAMM services, similar to that of “regular” forex brokers.