[2017-07-31] btc-e-on refunds the fbi and alexander vinnik

[Slow death]

btc-e-on refunds the fbi and alexander vinnik

On July 31 the bitcoin exchange BTC-e sent a message over Twitter and on the forum Bitcointalk concerning the company’s recent website seizure by U.S. law enforcement. Additionally, the statement claims that Alexander Vinnik was not the head operator of BTC-e and further states the detained Russian was never an employee.

BTC-e Reveals Information on FBI Takedown

Bitcoin.com recently reported on the recent takedown of the exchange BTC-e and the arrest of its alleged operator Alexander Vinnik. According to U.S. law enforcement Vinnik operated the trading platform and laundered $4B worth of bitcoins tethered to illicit activities since 2011. The exchange domain was seized following the arrest of Vinnik by six law enforcement agencies working on the investigation, and now many innocent BTC-e traders are concerned about their holdings. Then on Monday someone who had access to the company’s Twitter handle and Bitcointalk account sent out a message to the public.

“On July 25, FBI staff came to the data center where our server equipment was located and seized all of the equipment, the servers that contained databases and the purses of our service,” explains the translated BTC-e message on the Bitcointalk forum. “For almost six days now we could not get sane information from our hosting provider on what happened to our servers and because of this information we publish now.”

The Exchange Claims it Will Process Refunds Soon

BTC-e also states that other employees servicing the facility were also taken into custody by the FBI. Moreover, the trading platform says it will soon be revealing how it might be able to come back online and start a refund process.

“The next update will include information on what options are available to restore the service, and also the procedure for obtaining funds, in the event that the service is not started. In the current situation, if the service is not started before the end of August, then from September 1 we will start the process for refunds.”


https://news.bitcoin.com/btc-e-on-refunds-the-fbi-and-alexander-vinnik

[richardsNY]

I honestly had lost all hope, but this statement allows some positive light to come through. I have been reading through the reactions on btc-e's latest statement, and not everyone adds much value to these words, which of course is more than understandable. I personally don't care whether or not Vinnik is really involved in btc-e -- the only thing I care about is people getting their funds back. I seriously want to stop thinking about this anymore. If this service on whatever terms gets operational again, only wackos will be dumb enough to keep using them.

[Netnox]

I don't understand any of this:

https://bitcointalk.org/index.php?topic=2056158.0

They claim that Alexander Vinnik was neither the owner not the employee of BTC-e (perhaps a tactic to prevent further arrests). They also claim that all their coins are now confiscated by the authorities. If that is the case, then how they are going to process the refunds?

[1Referee]

I honestly had lost all hope, but this statement allows some positive light to come through.

In all fairness, it's a tiny bit of positive light that is coming through - light reflecting a clarity of not even 1%. In that regard, I wouldn't start to get excited as there is nothing that gives any word coming from BTC-E value. It's better to consider your coins as lost - I have done the same.

They claim that Alexander Vinnik was neither the owner not the employee of BTC-e (perhaps a tactic to prevent further arrests).

Obviously, they are looking to distance themselves from him as that is the only way they ever have a chance of becoming operational again in one way or another. If they manage to "prove" that BTC-E is a vicitim in this case alongside all other users, they might walk out with a hefty fine (that is likely going to be paid with user funds).

They also claim that all their coins are now confiscated by the authorities. If that is the case, then how they are going to process the refunds?

Not all their coins are confiscated. Their servers are confiscated, which basically means that we should consider all their hot wallets to be in the hands of the US authorities. The only thing BTC-E still has under its own control, are their cold wallets. Cold wallets are obviously not stored on servers, but likely with the top operator(s) of BTC-E. But as I said to RichardsNY as well, it's pointless to get excited since there is nothing that guarantees them to offer people refunds. Coin and fund status is still; lost.

[veleten]

I don't understand any of this:

https://bitcointalk.org/index.php?topic=2056158.0

They claim that Alexander Vinnik was neither the owner not the employee of BTC-e (perhaps a tactic to prevent further arrests). They also claim that all their coins are now confiscated by the authorities. If that is the case, then how they are going to process the refunds?

there will be no refunds,forget about the money
even if btc-e wanted to,they cannot do it officially,they are fined 110 mil and their servers are seized
not sure how much money did they keep in their hot wallets,but all of the money have been transfered to a new address and,probably seized by FBI
all the attempts to distance themselves from A.Vinnik is to avoid persecution and arrests
and how stupid was he to go places he could have been arrested,careless,he should have known better

[moriskarlov]

“The next update will include information on what options are available to restore the service, and also the procedure for obtaining funds, in the event that the service is not started. In the current situation, if the service is not started before the end of August, then from September 1 we will start the process for refunds.

Cool, i was almost sure that assets on people`s accounts were lost forever and would be nationalized by US government. Hope BTCE investors will get all their tokens in full, with exceptions for drug dillers and other dirty persons.