The reason why BTC-E users will not get their money back

[SirEGB]

Play at your own risk is definitely the game here, sadly nothing is 100% safe when it comes to Bitcoin.

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[Kanine Awe]

Good lesson to keep everything and keep all your private keys to yourself.  Only keep coins on an exchange you plan to exchange.

[Pe4kin]

Be aware that the BTC-e law enforcement, repressive police and military force.
She lowered all the resources of the most powerful Nations in the world.

This is not the situation - when You are in the lane bullies with a knife attacked.
They destroyed Saddam Hussein, Gaddafi and Noriega.
And now, to panic, to hope and demand that the market has recovered in 3 days ?

We must give them time and see what happens.
If they can withstand this blow. To restore your capability. To continue the work.
While being in conflict with the most powerful state in the world?

This exchange will only gain popularity and can only Pat!
And the situation will be quite interesting to develop further.

If the exchange will continue to work at us will be probably the first totally dependent exchanger.
In fact, we encountered the first way that cryptocurrency has become totally dependent and not controlled by the government!

Any freedom requires sacrifice!
Freedom of circulation of capital just can't be achieved.
The government will certainly resist. And use in this fight, and the police and military.

So that the struggle began. Will see how it end!

[Kakmakr]

The issue is mtGox users have had their money taken for years. Will it even be returned? If so, how will this process occur.

I'm sure many people have left the crypto community for life because large amount of money was stolen from them and they don't even know about this news.

The forfeiture laws in the USA will most probably be applied and most of that money will go to the US government. They might help some of the victims in the MtGox hack, but it will only be a small percentage of their losses. < most of that money would be gone >

The US law enforcement agencies have a reputation that they misuse their powers, when raids are done and legitimate money will also end up in their pockets. < even if you can produce proof that it was legitimate > 

[AGD]

The reason why BTC-E users will not get their money back

Stolen Bitcoin-s now splitting on 20 BTC wallets.
Some BTC sending on randomly exist legit addresses.

The coins will be joining together at one point and one day the guy wants to actually buy something with it. If criminals understood the concept of an open ledger, they would be using another currency instead of Bitcoin. If they understood PRISM, they would completely avoid computers for criminal activity.

[NorrisK]

It's bullshit that mt gox victims would be first in line over people that had funds there...

The coins of customers are not the property of btc-e and therefore should not be part of their assests that determines how much money they have to pay in fines etc.

That said, I'm afraid for my coins on there. Hopefully altcoins will get special treatment..

[mo_mo]

u.s should have no control of other countries business, and should not let u.s. take the money and put them into there own pockets.

[European Central Bank]

The forfeiture laws in the USA will most probably be applied and most of that money will go to the US government.

all law enforcement has right now is the domain name. they'll probably get the bank accounts. it's quite possible all the crypto remains untouched. we don't know who else other than the guy arrested has access to it.

[favila]

The forfeiture laws in the USA will most probably be applied and most of that money will go to the US government.

all law enforcement has right now is the domain name. they'll probably get the bank accounts. it's quite possible all the crypto remains untouched. we don't know who else other than the guy arrested has access to it.

But given these problems what incentive do the owners of BTC-E have to give users their money back? Especially if they are arrested and refuse to cooperate on private keys etc.

If the government successfully manages to retrieve the crypto I think they will make an effort to pay everyone back assuming there are funds to cover it.

[bones261]

The forfeiture laws in the USA will most probably be applied and most of that money will go to the US government.

all law enforcement has right now is the domain name. they'll probably get the bank accounts. it's quite possible all the crypto remains untouched. we don't know who else other than the guy arrested has access to it.

But given these problems what incentive do the owners of BTC-E have to give users their money back? Especially if they are arrested and refuse to cooperate on private keys etc.

If the government successfully manages to retrieve the crypto I think they will make an effort to pay everyone back assuming there are funds to cover it.

No, the US government is probably not going to give the funds back. The depositors of BTC-e are considered unsecured creditors. Unsecured creditors are next to last in line when a company is forced to liquidate. Only the actual owners/investors of the liquidated company are behind unsecured creditors, when dividing up the proceeds of the liquidation. Only hope for depositors is if somehow BTC-e's assets are worth more than the $110M civil penalty, any additional criminal fines, lawyers fees, restitution etc etc etc. Maybe the company can get good legal representation and reverse the civil fine and get acquittals or a sweetheart plea deal, but I doubt it.

[audaciousbeing]

BTC-E users like me are last in priority line.

That's where a main part of our money will go to:
https://www.justice.gov/usao-ndca/pr/russian-national-and-bitcoin-exchange-charged-21-count-indictment-operating-alleged

Next on the line are the MtGox victims.

I guess after USGov got paid, there won't be a Satoshi left for the rest.


edit: They are not coming back in 5 - 10 days, either. Admins will be trying to run as fast as they can.

Its so unfortunate that this have to happened and people get to lose their money without any form of compensation and this is what will continue to happen without regulation which cannot happen in the case of banks at least the promoters would have kept quite an amount of money as deposit and at the same time insuring depositors funds. Aside that, I am equally happy but part of what should be in that charges is betrayal of Trust.

[vanluan]

The BTC-E website is currently down, but the exchange claims this is due to unscheduled maintenance. “Will keep you updated. Sorry for the inconvenience,” it tweeted in English on July 25. On July 26, as news of Vinnik’s arrest broke, it tweeted in Russian that it expected to be up and running again within 10 days. 

[BitcoinerXX]

The BTC-E website is currently down, but the exchange claims this is due to unscheduled maintenance. “Will keep you updated. Sorry for the inconvenience,” it tweeted in English on July 25. On July 26, as news of Vinnik’s arrest broke, it tweeted in Russian that it expected to be up and running again within 10 days.  

its not coming back, the US gov got them. btc-e users will be the last people to receive any funds if any are left after all other party's have been paid restitution, providing they can prove they have a legitimate claim. expect this to take years...

[dunfida]

This is why I don't really trust any exchanges because anytime they will shut its door leaving all the investor or users on its platforms behind without a single cent to their money which are being store on it. Its really sad to know for those people who are victimized again on this matter. They should really consider those coins as lost because owners will definitely do the best as they can to secure those bitcoin or money.

[danipay]

This is why I don't really trust any exchanges because anytime they will shut its door leaving all the investor or users on its platforms behind without a single cent to their money which are being store on it. Its really sad to know for those people who are victimized again on this matter. They should really consider those coins as lost because owners will definitely do the best as they can to secure those bitcoin or money.

Many people have said that not 100% safe trading in some exchangers. Even a bad idea if you last too long your money there. Because we do not know what will happen in that exchanger in the future. This case can be taken as an example.

[BitcoinerXX]

This is why I don't really trust any exchanges because anytime they will shut its door leaving all the investor or users on its platforms behind without a single cent to their money which are being store on it. Its really sad to know for those people who are victimized again on this matter. They should really consider those coins as lost because owners will definitely do the best as they can to secure those bitcoin or money.

Many people have said that not 100% safe trading in some exchangers. Even a bad idea if you last too long your money there. Because we do not know what will happen in that exchanger in the future. This case can be taken as an example.

use shady exchanges and expect shady outcomes.

[JamesNoJosh]

It's on Youtube and reddit now.

Clear browser and use a proxy and you can see on website. Website domain has been changed and seized by big brother. Maybe we might have a chance but with over 500,000 users I think it will be a long wait. I have a MTGOX claim that waiting for payment as well.

http://imgur.com/EqnleRe

[AGD]

This is why I don't really trust any exchanges because anytime they will shut its door leaving all the investor or users on its platforms behind without a single cent to their money which are being store on it. Its really sad to know for those people who are victimized again on this matter. They should really consider those coins as lost because owners will definitely do the best as they can to secure those bitcoin or money.

Many people have said that not 100% safe trading in some exchangers. Even a bad idea if you last too long your money there. Because we do not know what will happen in that exchanger in the future. This case can be taken as an example.

use shady exchanges and expect shady outcomes.

or:

Only play with money that you can afford to lose

or:

Don't put all your eggs in one basket.

 

[exstasie]

The BTC-E website is currently down, but the exchange claims this is due to unscheduled maintenance. “Will keep you updated. Sorry for the inconvenience,” it tweeted in English on July 25. On July 26, as news of Vinnik’s arrest broke, it tweeted in Russian that it expected to be up and running again within 10 days.  

its not coming back, the US gov got them. btc-e users will be the last people to receive any funds if any are left after all other party's have been paid restitution, providing they can prove they have a legitimate claim. expect this to take years...

Is there any evidence that the US authorities were able to seize any funds? It's really weird that there was no mention of this in the press releases. Usually that's the headliner. I think they expected to seize a lot of funds, and came up mostly empty-handed. Remote servers and Mongolian bank accounts ftw! Unfortunately, this helps the BTC-e owners, but not necessarily the customers. The FBI basically said to the owners, "We are predators and you are prey" so the owners will probably just go into hiding. I sure would. Who wants to risk spending the next 55 years (or whatever term) in US prison?

[Pe4kin]

When pressured. Always have to answer.
https://russian.rt.com/world/article/413476-rossiya-ssha-sankcii-dacha-otvet