Troubled Bitcoin Exchange BTC-e Will Likely Issue Tokens in Bid to Relaunch and Refund Users

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by Maria Konash · 4 min read
Troubled Bitcoin Exchange BTC-e Will Likely Issue Tokens in Bid to Relaunch and Refund Users
Photo: Slava.KM/FLickr

Bitcoin exchange BTC-e has just published a new update about its plans on how to refund all the money to its users after it was shuttered by U.S. authorities in late July.

As we remember, the BTC-e website, that had been previously displaying a breakdown for maintenance message, was seized by US criminal authorities slightly more than a week ago. This was totally horrible news for its clients, who had lost access to their funds since then, especially given the arrest of Alexander Vinnik, charged with laundering of $4B, 95 per cent of which were cashed out at the BTC-e.

A week and something ago BTC-e had told users on Twitter that normal service would resume by Aug. 6. Today this seems to have failed so funds are still being kept by the system which makes them unavailable for withdrawal. When the situation became really acute, BTC-e users created petition that urged the Department of Justice (DOJ) to give users their money back from the exchange or at least to allow them to access them again, so they won’t lose everything they had.

The team behind the exchange assured its users that they would stay updated and that the funds would be eventually returned:

The next update will be information on what options are available to restore the service, as well as 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 of refund.
In the next 1-2 weeks, we will evaluate and publish information about how much money fell into the hands of the FBI and what amount of funds is available for return.

The funds will be returned to everyone!

Now the BTC-e’s team takes every possible step to make refunds come true, and here’s the latest update from the BTC-e’s owners, which provides its users with rather comprehensive information:

Exit from the current situation with the arrested Fiat:

  1. Last 14 days we were engaged in struggle for your means, it was possible to gain control over 55% of funds (depends on the course), the remaining 45% are arrested funds, the most part in fiat. As the arrest is withdrawn from the accounts, the amount will decrease.
  2. What is the way out of the current situation we see:
    1. Work under the current BTC-e brand is not possible due to unresolved issues from the Office of Financial Crimes of the US Treasury.
    2.2. At the moment, we are negotiating with a group of investors (an investment company), about buying and prompt launch of the service and repaying debts to customers. Further, the process of repayment of debt obligations will be described in more detail.
    2.3. After we transfer all balance sheets of the investment company, we will recalculate the balance sheets.
    2.4. The conversion procedure, taking into account the available 55% of funds:
    2.4.1. All liabilities for fiat (USD, EUR, RUR) will be transferred to BTE tokens (1 BTE is 1 USD) at the exchange rate on the date of conversion. Probably, for more operative closing of promissory notes, ICO will be held on BTE tokens.
    2.4.2. If you have on the balance the amount in koin, then you will be written off 45% of the balance of coins and credited with 45% of BTE (1 BTE is 1 USD). At the exchange rate on the day of conversion.
    2.4.3. If you have a balance in BTE, then you will be credited with 45% in coins (the sum will be divided into 7 different coins equally BTC, LTC, NMC, NVC, PPC, ETH, DSH) and write off the amount of 45% in BTE.
    2.4.4. Upon all recalculations, all users will have the opportunity to withdraw 55% of their funds from the system.
    2.5. The investment company works in compliance with KYC, AML and the licenses required for this activity, so all users will need to undergo verification.
    2.6. Tentative start dates end of August.
  3. All debt obligations will be closed primarily from operating income from the investment company’s commission, as well as from the funds we plan to sue from those who illegally arrested them.

The closing of the debt will be based on the principle of buying BTE tokens from the market.

The next update will provide more details on the procedure for accessing information on your balance sheet and when these funds can be withdrawn.

From the BTC-e team we officially inform that all the funds that were in the reserve fund (including all our income) were transferred to pay off the debts.

P.S. A warning! The cases of posting fake links on allegedly our new domain have become more frequent. All official information about our service is placed only in our twitter and from our official account on the forum.

Sincerely, BTC-e team

So far, the final destiny of funds that were stored by users at BTC-e still remains a mystery. Let’s hope for the best outcome for all of the three parties involved.

Altcoin News, Bitcoin News, Cryptocurrency News, News
Maria Konash
Editor-in-Chief Maria Konash

Being a successful graduate of Belarusian State Economic University (BSEU), Maria has acquired competencies in economic and social studies. Given Maria’s previous research working experience, and desire to explore what's really shaping the future, the main research focus is placed on FinTech and Blockchain Technology.

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