Major cryptocurrency exchange site BTC-e.com down and accused of money laundering

[Greg S]

After going offline for unscheduled maintenance just days ago, a man linked to operating crypto currency exchange site BTC-e.com, 38-year-old Alexander Vinnik, was arrested in Greece and is being charged with 17 counts of money laundering in addition to two counts of engaging in unlawful monetary transactions.

It is not clear exactly what Vinnik's role was within what was once the largest exchange platform for digital currencies due to the secrecy and lack of disclosures made about who actually was behind the site. Currently, a holding company registered in London is listed as the official owner.

According to US officials, over $4 billion has been laundered through the site since it opened in 2011. In 2014, exchange site Mt Gox had assets stolen causing it to shut down permanently. Prosecutors have suggested that Vinnik may have been using BTC-e.com to launder funds stolen from Mt Gox by setting up user accounts on the site and then collecting the trade fees himself. Nearly 530,000 bitcoins from the Mt Gox hack were deposited to BTC-e, currently worth over $1.3 billion.

At this time, it is unknown whether the site's assets are still in place or whether legitimate users of the site will be out their money. No movement of the coins held within BTC-e's wallets has been confirmed. Even if the assets are still intact, US officials may choose to seize all assets if the site is proven to have been actively involved in money laundering. In the case that assets may be returned to their original owners, distributing them back to their rightful owners could prove to be a challenge since no personally identifiable information was collected or verified by BTC-e.

According to a translated tweet from BTC-e, the site will be back online with 5-10 days. However, it is unlikely for trading to resume until legalities have been settled.

Update2: At the moment, work is underway to restore the service. Approximate terms from 5 to 10 days. Thank you for understanding # btce

A $110 million fine has been placed by the Financial Crimes Enforcement Network against BTC-e. Meanwhile, Vinnik has been handed a $12 million fine. If convicted, Vinnik is eligible for up to 55 years in prison which would likely be the remainder of his lifetime.

This is just one more example of an ongoing crackdown on cyber crimes. AlphaBay and tech support scammers have also been targeted and taken down earlier this year in joint efforts by US agencies.

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[VitalyT]

Hence the ugly head of all crypto currency platforms. They're all heading the same way, some haven't been caught yet. Hypocrites who elevated themselves above the banking industry.

There is an invaluable virtue in making it difficult to move money around, to prevent money laundering.

 

[Kibaruk]

There is an invaluable virtue in making it difficult to move money around, to prevent money laundering.

No man you are wrong, it's made so to prevent people avoiding taxes, they wouldn't care less about money laundering if there was a tax for it...

 

[VitalyT]

No man you are wrong, it's made so to prevent people avoiding taxes, they wouldn't care less about money laundering if there was a tax for it...

Check the definition for money laundering before objecting. Avoiding taxes is at the center of it, covering money obtained both legally and illegally.

 

[captaincranky]

Hence the ugly head of all crypto currency platforms. They're all heading the same way, some haven't been caught yet. Hippocrates who elevated themselves above the banking industry.

There is an invaluable virtue in making it difficult to move money around, to prevent money laundering.

You do understand that "Hippocrates", was a Greek physician, er. don' t you".

I think you meant, "hypocrites".

Hippocrates was the guy who first said, "do no harm". This guy>

 

[VitalyT]

You do understand that "Hippocrates", was a Greek physician, er. don' t you".

You're taking it a bit too far on the account of dumb auto-correction

 

[captaincranky]

You're taking it a bit too far on the account of dumb auto-correction

It was actually too comical not to.

Auto correct and spell check have the same "fatal flaw", you have to know what you're trying to spell and how to spell it, before turning them on. Both softwares are just there to clean up the small details.;
I prefer the browser's "spell check", but granted it does take extra time to go back and get rid of all the squiggly red lines under what I've mis-typed.

 

[VitalyT]

Auto correct and spell check have the same "fatal flaw", you have to know what you're trying to spell an how to spell it, before turning them on.

Hippocrates made me do it

 

[dirtyferret]

Auto correct and spell check have the same "fatal flaw", you have to know what you're trying to spell an how to spell it, before turning them on. Both softwares are just there to clean up the small details.;
I prefer the browser's "spell check", but granted it does take extra time to go back and get rid of all the squiggly red lines under what I've mis-typed.

Auto correct and spell check were both created by that great ancient Greek Mediocrates , he would have fixed them but hey he other things to do...

 

[J spot]

From what I've been reading they actually didn't break any laws from within the country that they are operating in.