[2017-07-26] Owner Of Russia's Largest BTC Exchange Arrested – Money May Be Lost

[just_Alice]

This is a very sad news for Russian bitcoiners. Many of them have some coins staying there.

I don't understand why they say that user funds may be never returned. The exchange wasn't hacked, right? So why ordinary people should suffer if one of the owners is on suspicion of money laundering?

The problem is that they are pursuing the shutdown of BTC-E and a case against the owners. They are treating it like Liberty Reserve, as if the exchange and all customers are criminals. Unfortunately, the authorities (by being unable to arrest the actual owners or high level admins, or seize any significant funds) have created a situation where the most sensible thing for the BTC-E owners to do is exit scam.

Originally, I had hoped they would allow BTC-E to pay a hefty fine, implement AML procedures and continue operations. That seems unlikely now that they seized the domain and condemned not only the owners but also the userbase as criminals.

If that's true then it is even worse. Not all the users are criminals and their funds should be returned to them. Cases like this ruin the image of bitcoin, but unfortunately they happen in one country or another.

[richardsNY]

I could contact a lawyer on Monday to gain information on how to approach this, and to know if it's even worth to proceed with any sort of legal actions. What else is there to do?

I personally think that will be a huge waste of money IMHO. Sure, you have a decent amount stuck in btc-e, but going through a huge load of legal hassle will end up costing you thousands of dollars, if it isn't closer to the ten thousand range. But then again, Bitcoin could at some point reach +$10,000 levels, where the current value of your 5 Bitcoins will look like peanuts. Maybe that victims could pool their efforts and try to force something via that way -- I think that offers far more possibilities than having just one person take legal action. I personally consider my 1 BTC as lost, that's the reality.

[veleten]

I have always thought why the exchange rates in BTC-e were lower than that in the other exchanges. Now I got the answer. Vinnik sold more than BTC300,000 of the stolen Mt Gox coins through BTC-e. Actually, BTC-e was a tool for him to sell his ill-gotten coins. There were always more sellers than buyers in BCT-e. And this is the reason.

your answer could be wrong,Btc-e did have slightly lower exchange rates but it has nothing to do with sellers or buyers ,after all
people could always register and buy if they wanted,this exchange accepted anyone and was pretty "democratic" in terms of verification
saying Vinnik sold stolen coins from Mtgox is just repeating what the US agencies are saying as to why they had seized him and his assests
we never know if it is true or not I tend not to believe until I have any evidence or proof
nothing has been provided so far,same as with the russians tampering with the US elections,haha
oh but everybody knows they did,right? same is with the stolen coins,no proof,but we know he did....

[btc_angela]

I have always thought why the exchange rates in BTC-e were lower than that in the other exchanges. Now I got the answer. Vinnik sold more than BTC300,000 of the stolen Mt Gox coins through BTC-e. Actually, BTC-e was a tool for him to sell his ill-gotten coins. There were always more sellers than buyers in BCT-e. And this is the reason.

your answer could be wrong,Btc-e did have slightly lower exchange rates but it has nothing to do with sellers or buyers ,after all
people could always register and buy if they wanted,this exchange accepted anyone and was pretty "democratic" in terms of verification
saying Vinnik sold stolen coins from Mtgox is just repeating what the US agencies are saying as to why they had seized him and his assests
we never know if it is true or not I tend not to believe until I have any evidence or proof
nothing has been provided so far,same as with the russians tampering with the US elections,haha
oh but everybody knows they did,right? same is with the stolen coins,no proof,but we know he did....

Its all assumptions are far are the US government is concern. But I don't think that they will make this kind of moved without any evidence. We know how they work. Maybe they have already building their cases on BTC-e for months now and has finally made a breakthrough that's why they have seize and "control" of the coins and arrested the owner.

[dreamhouse]

It's ok the owner of btc-e is arrested, but why account money will be lost? There's no point for the government to seize customer accounts unless there are proof that money laundry is involved.

[veleten]

It's ok the owner of btc-e is arrested, but why account money will be lost? There's no point for the government to seize customer accounts unless there are proof that money laundry is involved.

probably because every single bitcoin that were in circulation at btc-e
has been transferred to a new address once it has been revealed
and the exchange is fined 111 millions and the owner 12 millions,do you think they will be paying the money out of their own funds?
all of the user's funds are now gone,there is no doubt about that
money laundry involved or not,common folks will not be getting their money back

[Taki]

During the six years of operation, BTC-e was able to gain the reputation as a reliable trading platform, and it's owners obviously dearly appreciate it. But in connection with the withdrawal of purses and equipment, count on a speedy resumption of work is not necessary.
Within 1-2 weeks the exchange plans to assess the loss and amount, available for return to users. In accordance with the statement, the staff of the exchange will attempt to start again within a month, and if they can't do that, then they will start the refund on 1st September.