That's one interesting angle. Given that the case against Vinnik/BTC-e was largely based on blockchain taint analysis, and given the US government's use of civil asset forfeiture..... I wonder if they would argue that much of the coins under Wex's possession are BTC-e's and therefore "money laundering."
Still, it seems like they can't seize any coins from them. With encrypted databases, they can easily move coins before the authorities have a chance. But they might force them into a cat-and-mouse game of shutting down domains. And there is the issue of the fiat money again....
I suspect that the jurisdiction of the US with BTC-e is based on both customer usage requiring FIN(cen) (Financial Crimes Enforcement Network) registration but just as much it being proceeds of crime from the Cryptsy funds.
The US will try to have a long reach. Having a .nz domain name or NZ jurisdiction may not be the best move - just ask Kim Dotcom . They are trying to extradite him for DMCA violations
https://www.theguardian.com/world/2017/feb/20/kim-dotcom-eligible-for-extradition-to-us-new-zealand-high-court-rules I followed the case closely and the evidence they have against him is quite....eh.....creative. Being that he breached the DMCA rules because he didn't delete the copyright infringing data - despite the fact that deleting it would have been illegal. A conviction will cause all sorts of problems for dropbox, google drive, Microsoft, Apple, Samsung and torrents.
Some of the other evidence that they have has been ruled "illegally obtained" by the courts. (Illegal for GCSB to spy on NZ residents & citizens). But they froze all his funds.
ICANZ is based in the USA and has a far reach over domain names.
WEX.nz uses Godaddy - which is USA based - as their security certificate provider. So they are dealing with a US company.
NZ also has interesting laws covering crypto-currency. Not many laws - but enough laws for it to be considered a digital asset.
I see a future of lawyers arguing for years while the crypto sits seized in a wallet.
BTC-e funds transferred to WEX could have interesting implications since - no good title can pass if you knew or ought to have known that the asset was stolen.... (s26 Sale of Goods Act)
Selling stolen goods is proceeds of crime and under NZ law they can seize assets and require you to prove that they have been legally obtained.
Dealing with WEX.nz - could - potentially get your coins seized.
New Zealand authorities won't do it by themselves - but just like with Kin Dotcom they will be happy to assist the US in doing it....
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