Every day something new: About the BTC-e situation

in #bitcoin7 years ago (edited)

What is happening with BTC-e ?

With recent hacks still fresh on everybody's mind most of the community is starting to take more seriously the very repeated advice:

"Dont store the coins on any exchange"

Just this week the CoinDash ICO got $7 million stolen and the Parity Wallet realized $30 million were hacked

And as recently as yesterday a hacker Stole $8.4 Million Worth of Ethereum From the Veritaseum Platform $8.4 Million gone

It is on this climate that the BTC-e situation started to unfold

Suddenly one of the oldest and most popular exchanges "BTC-e" stopped honoring withdrawals, http://btc-e.com

It didn't take long for people to start getting worried and writing articles about it:

https://steemit.com/bitcoin/@kingscrown/one-of-oldest-bitcoin-exchanges-down-for-half-a-day-reminder-do-not-keep-coins-on-exchanges

On the previous link there is a screen shot of BTC-e's posts about the situation:

went.jpg

The most recent tweet posted by the official BTC-e account reads:

recent.jpg

We will have to see if they can recover, others have accomplished a comeback like this before: Bitcoin exchange dodged bankruptcy with markets-centered plan, sets precedent for dealing with digital currency disasters

It will be more difficult for BTC-e after this development:

criminal mastermind.jpg

The admin of the site "Alex" was arrested today as a the result of a long time investigation launched by the users affected back in 2013 when "Mount Gox" was hacked

https://www.theguardian.com/technology/2017/jul/27/russian-criminal-mastermind-4bn-bitcoin-laundering-scheme-arrested-mt-gox-exchange-alexander-vinnik

https://www.cryptocoinsnews.com/alleged-btc-e-admin-arrested-for-laundering-4-billion-in-bitcoin/

After the arrests new information about the case started to be revealed to the public:

http://blog.wizsec.jp/2017/07/breaking-open-mtgox-1.html

wisec.jpg

After the "WISEC" revelations on the Mount Gox case It would appear that the case is very straight forward but this is the internet in 2017 and conspiracy theories abound, as noted by one reddit user:

US Govt intends to fine BTC-e, a non-US company, for not implementing US identity requirements. (self.Bitcoin)

Alexander is alleged to be involved with MTgox hack laundering, BTC-e is not alleged to have done anything except not comply with US Identity regulations. The US wants to be handed 100m for it.

The US don't have control of BTC-e account funds nor their servers and BTC-e doesn't have offices in the USA, the US won't get a penny from them and it's highly unlikely BTC-e will close at all. After all these US statements came out BTC-e put out an update saying they intend to be back online.

However, this marks the start of the war we knew was coming. Now is not a time for FUD spreading, its a time for solidarity across all the communities.

Stop falling for the narrative, that it's a good thing exchanges are being targeted, for your protection.

"FinCEN today assessed a $110 million civil money penalty against BTC-e for willfully violating U.S. anti-money laundering (AML) laws." https://www.justice.gov/usao-ndca/pr/russian-national-and-bitcoin-exchange-charged-21-count-indictment-operating-alleged

That is about it for now on this topic

In the end you decide what it all means to you and that is all that matters

https://twitter.com/OneSirMeow/status/890515225270726656

TL;DR: If you dont control the keys you dont control the money.

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Glad I got my money out of that exchange! The US imposing a fine is hilarious.

It was kind of a shady place to begin with, but the chat was interesting like the poloniex troll box

OneSirMeow SirMeow UASF BIP148 tweeted @ 27 Jul 2017 - 10:12 UTC

Too soon? #BTCe https://t.co/g0XeycGyZT

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