BTC-e hacked ??

[Karpeles]

Huh? The charge BTCE had was operating a money service without a license.

Do you know the money service licensing requirements of the country BTC-e was operating in?

Does it matter? The United States consider the whole world as its jurisdiction, if it is convenient for them.

By the way, I think they said about an update by the end of this week( I think Friday is the end of week already, don't?). So anything new?

[erk]

Huh? The charge BTCE had was operating a money service without a license.

Do you know the money service licensing requirements of the country BTC-e was operating in?

Does it matter? The United States consider the whole world as its jurisdiction, if it is convenient for them.

What you just described is called tyranny, and caused the collapse of countless civilizations over the centuries.

This is one of the main reasons crypto exists.

[cryptomole]

Do you know the money service licensing requirements of the country BTC-e was operating in?

They say there operation was governed by Cyprus law, I think the data centre was in Bulgaria and it was run by Russians

Not sure why the US consider they have jurisdiction - maybe because some of the customers or wire transfers were from US? Or they traded $?

[Error 522]

But if they ban the stupid Americans from trading, how will we make easy money?

[figmentofmyass]

By the way, I think they said about an update by the end of this week( I think Friday is the end of week already, don't?). So anything new?

i guess you missed this. take a seat and grab some popcorn. from socialized losses to ICOs to vague reference to KYC, this update's got it all: https://bitcointalk.org/index.php?topic=2075551.0

Not sure why the US consider they have jurisdiction - maybe because some of the customers or wire transfers were from US? Or they traded $?

well in general, the US government does whatever it wants. whether that's raiding whoever it wants anywhere in the world and pocketing all their money, or invading other countries and installing dictators.

but yes, they served US customers. no IP block, no checkbox to confirm residency and of course no actual KYC. so that's the reasoning used by law enforcement. that's what the unlicensed MSB charge is all about.

[stingray454]

but yes, they served US customers. no IP block, no checkbox to confirm residency and of course no actual KYC. so that's the reasoning used by law enforcement. that's what the unlicensed MSB charge is all about.

Not to mention their servers were located in a US datacenter, which means they can quite easily demand to seize the hardware. Not the brightest idea to host it there to be honest.

[erk]

but yes, they served US customers. no IP block, no checkbox to confirm residency and of course no actual KYC. so that's the reasoning used by law enforcement. that's what the unlicensed MSB charge is all about.

Not to mention their servers were located in a US datacenter, which means they can quite easily demand to seize the hardware. Not the brightest idea to host it there to be honest.

Which US datacenter where the servers located in?

[stingray454]

Not to mention their servers were located in a US datacenter, which means they can quite easily demand to seize the hardware. Not the brightest idea to host it there to be honest.

Which US datacenter where the servers located in?

They were hosted by Cloudflare which is a US company. Exactly where the servers where physically located I'm not sure, I think I read somewhere in the US. But either way, as Cloudflare is a US based company the FBI can demand pretty much anything from them under US law and they have to comply, even if the servers were physically located abroad (which I don't think they were, I think it was a data center in california).

[YesLOST]

Any chance their "verification" is just simply to validate active accounts?  If the account doesnt get verified after a period of time, they re-claim/re-distribute any funds to cover losses?

I think there's a good chance this is why verification would be enforced. But that doesn't address the fundamental problem: who wants to send their ID to this exchange now and be linked to funds that the US government considers to be illicit proceeds? KYC in this situation raises the odds of a honeypot by a good percentage, too.

I have so much funds there, its my 15 years of life. My name is gladiator. I will do whatever it takes to get at least some of my funds. I do not care if its a honeypot which I doubt anyway, FBI would have offered 100% and wrote in English too, to get all the USA users to verify themselves.

[erk]

Not to mention their servers were located in a US datacenter, which means they can quite easily demand to seize the hardware. Not the brightest idea to host it there to be honest.

Which US datacenter where the servers located in?

They were hosted by Cloudflare which is a US company. Exactly where the servers where physically located I'm not sure, I think I read somewhere in the US. But either way, as Cloudflare is a US based company the FBI can demand pretty much anything from them under US law and they have to comply, even if the servers were physically located abroad (which I don't think they were, I think it was a data center in california).

Cloudflare doesn't host websites, it's a distributed caching proxy service for speed and DDoS protection, plus DNS services.

[stingray454]

Cloudflare doesn't host websites, it's a distributed caching proxy service for speed and DDoS protection, plus DNS services.

Oh, you're right, I thought they provided hosting as well. Then I'm not sure who the provider is, I read something about servers seized in the US at least, but can't find the link at the moment. Might just have been cached CDN files for the site or similar, who knows.

[cryptomole]

Cloudflare doesn't host websites, it's a distributed caching proxy service for speed and DDoS protection, plus DNS services.

Oh, you're right, I thought they provided hosting as well. Then I'm not sure who the provider is, I read something about servers seized in the US at least, but can't find the link at the moment. Might just have been cached CDN files for the site or similar, who knows.

This article seems to suggest that they were'nt US based:
https://news.bitcoin.com/btc-e-closure-clients-are-mt-goxed-by-the-u-s-a-new-front-in-crypto-wars/


For the first time, the U.S. government attacked a foreign exchange on foreign soil. It closed down the Russian-based exchange BTC-e. (Russian-based refers to ownership, not location.) BTC-e reported, “On July 25…the FBI staff came to the data center…and seized all equipment, the servers contained databases and purses of our service.” BTC-e is charged with 21 violations of U.S. financial law; the Financial Crimes Enforcement Network also hit it with a $110,003,314 penalty. The move was stunning not only because BTC-e is one of the oldest and largest exchanges but also because many now locked accounts are owned by U.S. citizens, non-residents.

[cryptomole]

https://www.lexology.com/library/detail.aspx?g=019e4e0f-fddb-4097-895c-c872bbbdcb3a

Jurisdiction

Although BTC-e is not a US company, FinCEN asserted jurisdiction because BTC-e conducts business as an MSB in substantial part within the United States. More specifically, FinCEN regulates as “money transmitters” (MTs) any person in the business of accepting currency, funds, or any substitute for currency from one person and transmitting such currency, funds, or substitute for currency to another person or location (unless an applicable exemption applies). To establish jurisdiction, FinCEN asserted that:

    Since 2011, BTC-e customers located within the United States conducted at least 21,000 virtual currency transactions worth over $296,000,000.
    These transactions included funds sent from customers located within the United States to recipients who were also located within the United States.
    These transactions were processed through servers located in the United States.
    BTC-e attempted to conceal that it provided services to customers located within the United States.
    BTC-e instructed customers to make use of correspondent accounts held by foreign financial institutions or services provided by affiliates of BTC-e located abroad.

[phineas562]

From https://bitcointalk.org/index.php?topic=2075551.0

Update5! Important! 09.08.2017

exit the current situation with arrested Fiat:

1. latest 14 days we were engaged in a fight for your money, managed to get control over 55% (depending on the course), and the remaining 45% is arrested means most in fiate. As the lifting of arrest from the accounts of the amount will be reduced.

2. What is the way out of the current situation we see:
2.1. Work under the current brand of BTC-e is not possible due to closed questions from the Office of the Finance Ministry's financial crimes United States.
2.2. Currently we are negotiating with a group of investors (investment company), about buying and early launch service and repayment of debts to customers. Next will be more detailed the process of paying off debt.
2.3. once we pass all balances investment company would be recosted balances.
2.4. conversion Procedure taking into account 55 per cent of available funds:
2.4.1. All obligations on fiato (USD, EUR, RUR) will be converted into tokens BTE (BTE 1 equals 1 USD) exchange rate on the date of conversion. Perhaps, for the more expeditious closing of debt obligations, according to the ICO will be held BTE tokens.
2.4.2. If you have a balance sheet amount koinah, then you will be charged 45% of the balance of coins and enrolled 45% BTE (BTE 1 equals 1 USD). Exchange rate on the date of conversion.
2.4.3. If you have a balance in BTE, you will be credited 45% of koinah (the amount will be divided into 7 different coins equally BTC, LTC, NMC, NVC, PPC, ETH, DSH) and charged at a rate of 45% in BTE.
2.4.4. In fact of all recalculations from all users will be able to withdraw their funds from 55% system.
2.5. Investment Company works with observance of KYC, AML and necessary license for this activity, all users will need to pass verification.
2.6. The indicative dates for the launch of the end of August.

3. all debt obligations will be closed primarily from operational Commission income investment company, as well as from means that we intend to sue those who illegally arrested.

Closure of the debt will take place according to the principle of redemption of tokens BTE from the market.

The next update will be more detailed information on the procedure for access to information on your balance and when those funds can be withdrawn.

BTC-e team officially announce that all the funds that were in the contingency fund (including our entire income) were submitted for repayment of debt.

P.S. Warning! Frequent posting on forums fejkovyh links to supposedly our new domain. All official information about our service is placed only in our twitter and our official account on the Forum.

With best regards, the team of BTC-e

[YesLOST]

    Since 2011, BTC-e customers located within the United States conducted at least 21,000 virtual currency transactions worth over $296,000,000.

$296,000,000 of the alleged $4000,000,000.

[cryptomole]

"BTC-e attempted to conceal that it provided services to customers located within the United States."

I wonder where the rationale behind this statement comes from.
It seems odd that they would attempt to conceal something unconcealable - I wasnt aware that it was even supposed to be secret

[bananax]

"BTC-e attempted to conceal that it provided services to customers located within the United States."

I wonder where the rationale behind this statement comes from.
It seems odd that they would attempt to conceal something unconcealable - I wasnt aware that it was even supposed to be secret

Maybe lawyer speak for "did not require the users location to be given" or "did not provide information on users when requested"

[virasog]

If you are just reacting to changes in the website policies on withdrawals and deposits things like that. Then I would say no there hasn't been any hacking they simply like to change those things every once in a while. That was one of the exchanges I used quite a bit in the beginning and then I found that their limits for getting pretty high, and at the number coins if they were working with is getting pretty low.

[bonker]

"BTC-e attempted to conceal that it provided services to customers located within the United States."

I wonder where the rationale behind this statement comes from.
It seems odd that they would attempt to conceal something unconcealable - I wasnt aware that it was even supposed to be secret

Maybe lawyer speak for "did not require the users location to be given" or "did not provide information on users when requested"

This is a bizarre case of US overreach - impounding funds of non-US citizens trading on a non-US exchange . WTF is next, are they going after aliens trading through space the US once passed through?

[jojo69]

WTF is next...?

bail ins of 401Ks is next