Today we got an update from BTC-E via their twitter account which links to a post on Bitcointalk.
Here's the link to the thread on Bitcointalk (it's in Russian).
https://bitcointalk.org/index.php?topic=2075551.0
Here's a link to the Twitter post on their official Twitter account.
https://twitter.com/btcecom/status/895231659490115584
Here's an English translation of the post (not sure if it's a good translation or not).
Update5! Important! 08/09/2017
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 As the arrest is withdrawn from the accounts, the amount will decrease.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:
2.1. 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
First of all this is a lot to take in so I'm going to try and break it down into pieces. Please note this is my own understanding of something that maybe translated poorly into English.
1. Looks like they have control of 55% of the funds before they got shut down. Most of the funds that were seized were in fiat so what I am assuming is that majority of the funds in that 55% is in crytpo.
2. BTC-e as a company is not viable anymore and they are working with a group of investors to take it over and launch the service under a new company quickly. I'm not understanding what they mean in regards to the balance sheets and recalculating them.
Those who had fiat at the moment of closure will be given a BTE token which will be valued at $1 USD. They may have an ICO to raise funds.
If you have a crypto you 45% will be written off leaving you with 55%. For example if you had 100 BTC you will now have 55 BTC if my understanding is correct. The remaining 45% will be credited to you in BTE token. It will be at the exchange rate on the day of conversion. I f Bitcoin is worth $3,300 on that day you would get 148,500 BTE tokens. Again if I am understanding it correctly.
The part where they say if you have a balance in BTE you will be credited with 45% in coins. That whole part (2.4.3) is confusing to me so if someone can explain it I'm open to hearing what you all think that means.
After all is said an done you will be able to withdraw 55% of funds from the system. What is confusing to me is this 55% of the 55% of what's left? Can I withdraw 55% of my total holdings? So if I have 55% in Ethereum and 45% in BTE (their token) can I withdraw all my Ethereum and leave the BTE? Only time will tell.
Users will have to be verified (understandable) and they hope to start at the end of August.
I'm curious if they are working with law enforcement to get folks their money back. Otherwise who would invest in a company that law enforcement is trying to shut down? Wouldn't that open up those investors to a potential run in with the law?
I really hope things work out as I have a substantial amount of coins in BTC-E and like everyone else I'd like them back. I'm at the point where I'd be happy to get 55% back.