The news that shocked the bitcoin community came when there was a crackdown on BTC-e led by US authorities. Besides being one of the largest bitcoin exchanges, it is also one of the oldest, having being founded back in The crackdown on BTC-e was a double whammy when it was hit by two government institutions.
The first blow came from the U. FinCEN claims that BTC-e was basically providing a platform for financial crimes like drug sales and ransomware attacks.
There were 21 charges in all, ranging from money laundering to other financial crimes. Looking at the indictment makes BTC-e look like the centre of all financial crimes enabled by bitcoin. It is indeed true btce news bitcoin exchange shuts down after $110 million bitcoin has been used by criminals to facilitate their crimes.
That was a multi-million dollar black market for all sorts of illegal drugs. Then there have been increasing incidents of ransomware recently, with the attackers claiming payment in bitcoin.
It has become such an epidemic that companies are stockpiling on bitcoin just to be ready for possible ransomware attacks. Bitcoin exchanges are supposed to require their clients to prove their identity before being allowed to transact. BTC-e did not have this measure put in place, and users could remain anonymous even to the company. There was also a charge against Vinnik for his involvement in the Mt.
From the investigations, most of the stolen bitcoin were ran through BTC-e, with some of the accounts being linked to BTC-e administrators including Vinnik. What we do know is that when the authorities bring such charges down on a company, that company often collapses. These are the same charges levelled against BTC-e, with some more sprinkled in.
I have no doubt, BTC-e will not recover from this, either from the criminal charges or when the users leave. The BTC-e website is not accessible at the moment since the authorities have seized it, but the New Zealand portal is accessible from time to time. There is also an online petition by BTC-e users asking the authorities to let them take their money out.
This might work, as long as one can prove the source of their funds, otherwise… Like in previous cases, the innocent bystanders have always been collateral damage, btce news bitcoin exchange shuts down after $110 million it may just happen again. As for bitcoin itself, the community shook off the crackdown on BTC-e within days, no long-term damage there.
Stay up to date with the financial markets everywhere you go. What led to the crackdown on BTC-e? Comments 0 comment s Btce news bitcoin exchange shuts down after $110 million here to cancel reply. Get the most recent news at your inbox Stay up to date with the financial markets everywhere you go. Sign up for updates. View ICO See whitepaper. Thomson Reuters is moving its derivatives business out of London. BitBay Analysis - seems like we are heading lower.
Einsteinium Analysis - Supports are under the pressure. Get the most recent news at your inbox.
Cryptocurrency trading is a source of passive income for many. If the price of a coin is less than 0. And of course that one time Bitfinex claimed they were going to get a financial audit by Ledger Labs and continued that lie for eight months until they finally came clean about the Ledger Labs financial audit.