Binance Has frozen WEX Accounts


Binance, the largest in terms of trading volume in the crypto-exchanges, froze the accounts, to which 93,000 ETH were received from the wallets associated with the problematic WEX trading platform.

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.

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.

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According to CoinDesk, funds cannot be withdrawn by “hundreds of WEX users”, judging by the number of participants in the corresponding Telegram-chats.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 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.