The accounts were frozen on October 25, but this became known only a few days later from a tweet from the head of Binance, Changpeng Zhao.
the identified accounts are frozen, please report to law enforcement and have a case number. We will work with LE. This is part of centralization we hate too, dealing with other exchange’s mess (we don’t even know the details). But we will do what we can. https://t.co/tgyYI5ptqx
— CZ Binance (@cz_binance) October 30, 2018
Shortly before this, Twitter-user John James wrote that funds from WEX cold wallets are moving through Binance, which means that the latter contributes to the laundering of money stolen from users.
Also another interesting twist. Wex cold wallets are moving funds through @binance . Meaning Binance is potentially help launder millions of dollars worth of stolens funds from Wex users. We have proof too. @cz_binance
— John James (@RedDragon___) October 28, 2018
Measures were taken in response to requests from WEX users, who have not been able to withdraw their funds for a long time. They managed to track the movement of funds in the Ethereum blockchain and came to the conclusion that the 25 transactions that arrived at Binance from August to October were sent from WEX-related wallets.
Users were concerned that WEX (the successor of the infamous BTC-e) since July of this year does not offer the possibility of withdrawing funds.
According to CoinDesk, funds cannot be withdrawn by “hundreds of WEX users”, judging by the number of participants in the corresponding Telegram-chats. At the same time, at least $18 million are at risk.
According to WEX users, who applied to Binance, the first transaction of 485,705 ETH was performed on July 29 last year. According to Etherscan, it was produced from a previously owned BTC-e address. From September 2017 through January 2018, another 480,000 ETH were sent via 32 transactions to another WEX wallet, as well as other addresses. After that, funds from one of these addresses gradually entered the wallet of the Binance exchange.
Binance spokesperson Leah Li said that her company always investigates user complaints and suspends access to accounts seen in suspicious activity.
In September last year, the notorious exchange BTC-e restart on WEX.nz domain. In April, it became known that WEX paid off 20% of the total amount of debt obligations of the BTC-e platform.
After some time, cryptocurrencies on WEX began to trade at a price much higher than the equilibrium. However, anxiety among users has increased even more when it became known that the ex-militant “DPR” Dmitry Kravchenko was going to buy the exchange.