After FBI Takedown: BTC-e Exchange Says They Still Possess Databases and Wallets

According to a new post on the forum Bitcointalk, the now defunct BTC-e exchange says it has control over some its servers and bitcoin wallets. At the moment, operators of the trading platform detail they are evaluating the balances.

Also read: Segwit2x and the Tale of Three Bitcoins

BTC-e Reveals They Are Assessing Wallets and Balances

BTC-e Exchange Reveals They Possess Databases and WalletsOver the past few weeks, news.Bitcoin.com has reported on the BTC-e exchange and how it was seized by U.S. law enforcement. We further detailed how the operators of the exchange released a public message, describing the FBI takedown and the possibility of customers getting their money back. According to the message, some of the “purses” were taken by the FBI so there could be a portion of funds that will be unavailable to BTC-e traders.

On August 3 the trading platform’s operators left a message in Russian stating;

We were able to access our databases and purses [wallets], we are currently assessing the data and bitcoin balance sheets, this information will be made public before the end of next week.

BTC-e Exchange Reveals They Possess Databases and Wallets
The BTC-e trading platform’s latest update written in Russian.

Other Members of BTC-e Partner Businesses Arrested

The U.S. Justice Department and the Financial Crimes Enforcement Network (FinCEN), have seized the trading platform’s domain and claim the exchange has broken money transmission laws. Further, the indictment of the alleged BTC-e administrator, Alexander Vinnik, includes a $110M penalty against the BTC-e exchange for money laundering and illegal money transmission.

BTC-e has also mentioned in its latest public message that employees from a particular company called, Mayzus Financial Services Ltd, have also been arrested for being tied to the “money flow.”

Traders who kept money on the exchange who were not involved with illegal activities are not pleased with the U.S. government’s intervention. The message from BTC-e is a hopeful sign that some traders may get their funds back. At the time of writing U.S. law enforcement has not yet revealed how much money was confiscated from the exchange. If BTC-e reveals how much they have left, and how much the FBI seized next week, traders should get a better idea of the true extent of losses.

What do you think about the latest statement from BTC-e? Do you think they will return the money to customers? Let us know in the comments below.


Images via Shutterstock, BTC-e, and Bitcointalk.org.


Bitcoin is a decentralized digital currency that enables near-instant, low-cost payments to anyone, anywhere in the world. Bitcoin uses peer-to-peer technology to operate with no central authority: transaction management and money issuance are carried out collectively by the network. Read all about it at wiki.Bitcoin.com.

  • Christina Marie

    paper wallets people…

    • Christoph Obrecht

      Got Paper is the new slogan.

      • sondra oppedisano

        lmao

    • matrix

      be paper to my wallet

  • Controlling the entry and exit points …. Cryptocurrency is now more regulated than cash.

    • Dr. Bubó

      yes but if bitcoin goes mainstream there could be no exit point.

      • William Wanklyn

        Exactly why I stack rather than trade. “Value” is being moved out of fiat and into crypto. As we accept crypto, who needs the fiat?

        • Chuck Morris

          To paraphrase one of AA’s quotes, ‘crypto is real money, everything else is goatshit’

  • Carlos

    From an ethical perspective the FBI should also ensure individuals not involved should get their money. It is the right thing to do and it should be done expeditiously as every day passes there are costs won and lost.

    With that said, this is where the the whole digital currency concept fails. From my perspective your digital wallet should not be held by that particular server or exchange. If so, then you just moved the ‘third’ party from the banks to another entity. Technically, there should be no question of money being returned or refunded. Except for the monies that were in the process of being converted from fiat currency to digital currency. There should be no assets frozen by the siezing of a server, it should be technically impossible. Your wallet should be your wallet. Maybe I’m misunderstanding the concept.

    • “From an ethical perspective…” — bleep, you lost them.

    • But aside from my attempted joke (about the FBI and ethics) the reason people trust these institutions is that they don’t trust themselves. Not everyone is technically sophisticated enough to have their own wallet, worry about malware, or don’t trust or know how to use paper wallets. So they trust these exchanges like they are FDIC insured, but they are definitely NOT!

      • William Wanklyn

        If you can’t trust yourself, you better get your mummy to help.

        • I understand that. But I was explaining other people’s thinking. They consider them like banks. And you want to keep your cash in a bank in case your house catches fire, or someone finds where you buried your jars of cash, etc…

    • Courtney Karl

      The problem is putting your currency in the exchange. If you wanted to ensure you have control of your currency, you should literally take a position by buying a currency and then sending that amount of currency to a wallet that you and only you control.

      • Juan Yepez

        If you do that how you can trade?

        • Courtney Karl

          It does make it a bit more difficult, but say you were trading DASH/BTC, deposit BTC, buy DASH at the market price, withdraw DASH to a wallet u control, DASH price goes up, deposit DASH back into exchange, sell DASH for more BTC than you paid for, withdraw BTC, profit.

          • Farmer Blue

            problem with that is there are hefty fees for withdrawing btc and other crypto back to your wallet. making trading very difficult, not to mention you will missing trading opportunitys as it isn’t instantly transferred back and forth, it can take time to go back and forth between wallet and site.

          • Courtney Karl

            There are no hefty fees. And, the person wanted to know how to safely trade. This is the safest way, not the easiest or most profitable

    • When the FBI seizes, all of the seizure is US Treasury property. Someone would have to communicate and finally pay for the US Treasury to release their share. That is if they have a streamline communication(usually a Senator) and favorable judgement(a judge with good relations) on their behalf by the US Treasury and the US Justice Department. Technically, you are correct. But in reality and a harsh one, you are missing the expense and the hijacked ownership by the FBI, US Treasury, and US Justice Department. I do not think they have the right or standing to do what they did, but they did it and now it is a very long road to recover your involvement in their target. The FBI, Treasury, and Justice will pay themselves well before they release the rest and I am sure they will not do it without being sued.

    • sondra oppedisano

      FBI does not work quickly, And they don’t give a Hoot about anyone!

    • Dr. Bubó

      They cant seize the assets if they dont call it assets! Is a private key an asset???

    • William Wanklyn

      There is no need to have your coins on the exchange. You can and should have your own wallet or wallets. One for the phone, one for the laptop and a hardware wallet and the rest offline on paper.
      The FBI have seized assets on the exchange. My sceptical self tells me those assets are long gone. Good luck with that.

      • AM

        According with your shitty minded speech, if that would happen in all the exchanges then there would not be possible any kind of trading.. and idiots like you whose are expecting the right moment in the warm of their so secure offline wallets, they wouldn’t be capable to cash the coins to earn some dollars and keep enjoying their miserable and arrogant lifes, so please shut the fuck up and if you haven’t the guts to trade, remain in silence for minute and respect the people who lost their funds, fucking dick head.

      • Pablo

        more risk more profit. Trading btc will normally make +50-300% in btc annually. Its reason to have coins on exchanges.

    • Marlon Jones

      Absolutely

  • Liberty88

    Congrats FBI…. You seized ‘software’ that is worldwide on a blockchain. Whoop-di-doo. Just shows desperate, irrelevant gubments that don’t have a damn clue.

    • sondra oppedisano

      That was my thoughts! Idiots! What do you expect from the FBI(forever blatant idiots)

    • William Wanklyn

      They seized the common wallet that the exchange uses for their transactions. That has a private key that the FBI now have, giving them access to all the coins on the blockchain that can be moved with that key.

      • Liberty88

        They’re not only ones with that key.

        Also – it is wise not to leave funds on exchanges unless you’re going to make an immediate purchase or exchange then take funds off.

  • Menno

    The odds of BTC-e turning over the funds to the rightful owners are far higher than the odds of the criminals called FBI doing so.

  • Sergey Mayzus issued a statement on the 31st on one of his sites(pretty easy to find it) that he nor his companies willingly worked with BTCe and tried to block any persons or entities with links. He specifically called out his payment services and said he reported suspected links to law-enforcement agencies of Great Britain but did not name them. Sergey seems to be pretty peeved about the github io site detailing him as a link to BTCe. That site has apparently referenced the 2012 hack of BTCe as well. I hope sources to this story are fresh and not regurgitating claims. Who at BTC-e is mentioning others and why? It is the only new information and it leaves me wondering why it is inserted into this update.

  • Pablo

    Respect if this guys will restart exchange. It’s one of the oldest exchange. Also good idea to make alternative decentralized exchange btce2.0.

  • sjs

    Interesting move by BTCe. The FBI takes possession of their crypto and BTCe endeavor to take it back from under their noses. This is not going to end well especially is they succeed.