Famous cryptocurrency exchange BTC-e was taken down by police authorities regarding the arrest of Alexander Vinnik in Greece earlier this year. The 38-year-old Russian national was convicted for allegedly laundering $4 billion of fake bitcoins. Vinnik was a well-known operator, but he faces turmoil as his legal future reaches despair.
Shortly following Vinnik’s arrest and his exposure, users started to believe their funds had also been compromised by authorities, and then promptly reacted by creating a change.org petition asking for their money back. It’s been additionally revealed that the exchange was issued for $110 million, causing the arrest of various employees from a company called Mayzus Financial Services Ltd for illegitimate “money flow.”
Active users of the BTC-e services were updated about the exchange’s situation on Bitcointalk and Twitter. An admin revealed that they had seized over 55% of user funds and the remaining funds would be released through a Bitfinex token. The exchanged relaunched its services as World Exchange Services (WEX).
In a publication, WEXa agrees that it did receive virtual assets from BTC-e, but hasn’t earned any other financial obligations or cash. Then WEX continued to update its users on the matter:
“It was earlier reported that the conversion would happen in the ratio of 55% of balances and 45% tokens. At the day of the lunch, the ratio of 61.79% Fiat and crypto and 38.21% (tokens) was possibly generated.”
The company has previously stated that funds will be restored to everyone. Recently, several WEX users stepped forward to confess that the money they deposited into the exchange is allegedly stuck in limbo. However, two companies claim that the other one has the funds.
Earlier this month, Bitcointalk discuss forum users claim that WEX started approving the identities of the fiat currency customers to refund them while attaining with regulation. After the process, users received an email that encouraged them to contact a third-party company called Money Polo that was allegedly in control of the funds and presumably handled their financial operations.
The company’s website claims that Money Polo is a registered trademark owned by Mayzus Financial Services, the company which its employees were probably arrested upon BTC-e’s disclosure.
After contacting the company, users were told that Money Polo received their money, and credited it to BTC-e, who may now seemingly be escaping the situation, as it is now WEX, an exchange that claimed not to “buy or accept any financial obligations form ex-BTC-e.”
Users were told after contacting the company that Money Polo accepted their money, then distributed it to BTC-e, who is currently escaping the situation. However, WEX has formerly claimed they have not bought or taken any financial obligations from previous BTC-e employees.
“We need to know: where did the money go?”
Users have attempted to get either WEX or Money Polo to continue clarifying the situation in many ways possible, but so far all answers remain the same.
Then users organized various attempts to retrieve their money by contacting organizations such as Interpol, Europol, and FinCEN. Only one group replied Financial Ombudsman stated it reached the two companies with a two months limit to provide a satisfactory resolution.
One user told CCN in hopes of other victims will step forward. He added:
“We have filed a complaint in several websites and authorities. Where is the money?”
Another user explained that he deposited almost $115,000 in July, right before BTC-e funds were seized by the FBI. He then disapproved of the possibility of the U.S. government being in control of the money. He pointed out that no information can be found on legally obtained documents. He later clarified that if he were given a chance, he’d provide proof that the money was collected legally.
Various users that were affected contacted their banks attempting to retrieve or inquire about their funds. Ultimately, they were told Mayzus Financial Services received the funds, refusing to return them.
A user believes that BTC-e is collectively scamming users as he told CCN so that most of their customers would grow tired and eventually quit their cause. He stated:
“It’s basic scamming: 1) they scam their clients; 2) the clients complain for some time; 3) most of them give up shortly; 4) easy money. BTC-e does this all the time….but now they had the best situation to SCAM big money.”