The popular Exchange platform BTC-e has been down for about 2 weeks now.
I've already wrote a post about Alexander Vinnik being arrested in Greece.
The BTCe platform always remained anonymous, but Vinnik is facing charges of operating the platform, laundering billions of dollars, and even being tied to the Mt. Gox fraud case in which millions of users lost their funds.
First, let's recap the events of the BTCe case in chronological order.
(If you've been following the case closely, skip to the bottom of this post for the latest information that was released today).
First Statement from BTCe - July 31st
When Vinnik was arrested, the exchange didn't confirm or deny any of the charges.
Then, there was a message posted on the BTCe Bitcointalk forum account (translated from russian):
“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. 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.”
"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."
They assured that customers would be refunded, and then claimed that Vinnik was not the head of the company.
Re-gained access to databases - August 4
Last week, BTCe released another statement through the Bitcointalk forum once again.
The BTCe forum account stated that they have re-gained access to the platform's databases and wallets.
Although some funds were confiscated by the FBI, the exchange wrote once again that they were planning to redistribute the rest of the funds to the users and that they had gained access to 55% of the funds.
"We were able to access our databases and wallets, at the moment we are evaluating data and balances on [coins], this information will be made public by the end of next week."
Latest Update: Re-launch? Refund? - August 9
Today, BTCe released a statement that shows an important turning point in this case.
They revealed that the platform will re-launch under a new name, and that they will offer customers a refund in form of tokens.
The update was posted through the long-term bitcointalk forum account (but it's still unknown who operates it).
It seems like the exchange is cooperating with an unnamed group of investors to organize re-launch, stating that the BTCe branding will be abandoned "due to unresolved issues from the Office of Financial Crimes of the US Treasury."
The new website should launch under a new name at the end of August, and more details are to be released in the near future.
The new "BTE" token will be issued to customers who suffered from the loss, and as the exchange buys back those tokens from the market, the users receive their refund.
This is the same method that Bitfinex used to issue refunds after a $60 million hack in 2016.
"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. If you have on the balance the amount in [coin], 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."
Conclusion
Although BTCe only managed to reclaim 55% of the funds (the rest was confiscated by the FBI), they are planning to refund those funds to their customers.
All the affected customers need to do is verify themselves, and then they will be issued BTE tokens.
We still don't know how exactly Vinnik is connected to BTCe, but at least it seems like the ones affected by this whole dilemma are going to receive compensation.
BTCe will eventually launch as a new website under a new name at the end of this month - further details will follow.
© Sirwinchester