Bitcoin exchange BTC-e promises to return user funds

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BTC-e domain seized

The downed Bitcoin (BTC) exchange BTC-e has taken to Bitcointalk forum to announce the current situation as well as its plans on returning user funds.

The BTC-e exchange domain was taken down by the FBI and this happened just days after the arrest of Alexander Vinnik, a 38-year-old Russian man, who is accused of money laundering. Multiple reports emerged after the arrest of Vinnik that claimed to establish a link between Vinnik and the downed Bitcoin exchange.

BTC-e didn’t make any announcements after their domain was seized for a few days, but they have now taken to Bitcointalk forum to provide information about what is currently happening with the exchange from their point of view. In the statement it described was happened on July 25 when the FBI raided a data centre where BTC-e servers and other equipment were located.

In the statement BTC-e notes that all their equipment was seized on that day and after three days on July 28, their domain was seized as well.

The servers that were seized contained all the BTC-e databases as well as wallets for the service – meaning that user funds were also seized.

In the post BTC-e says that it will be revealing more plans about how it intends to do get users their funds back. BTC-e notes that if the service isn’t restored before end of August, then they will be initiating the refund process. Over the course of next couple of weeks, they will be evaluating how much money has fallen into the hands of the FBI and how much they have at their disposal that can be returned to users.

BTC-e also made a brief statement about Vinnik wherein it said that Vinnik is and has never been associated with BTC-e.

Vinnik was arrested in Greece last week under suspicions of running a money laundering operation. According to several reports, the Russian man is said to be an operator of the BTC-e exchange, using the platform to laundry Bitcoins for “people involved in crimes ranging from computer hacking to drug trafficking”.

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