A month after BTC-e, one of the world’s oldest Bitcoin exchange, was shut down by US authorities, the team has announced plans for daily updates throughout the platform relaunch.
According to a new update posted in Bitcointalk, the company is preparing the necessary resources for relaunching BTC-e by “transferring digital resources to an investment company”. The team once again reminded users that they will be able to withdraw 55% of their funds once the platform is back online. According to the administrators, the next update will be on August 30 and will be followed by daily updates.
A number of questions were also answered on the same thread. The most relevant statement was about the US justice’s legal efforts against BTC-e:
“At the moment, we have not received official documents from the United States. All that is at the moment is an order”
The downfall of BTC-e
A joint law enforcement operation brought down BTC-e on the 25th of July, this year. Alexander Vinnik, one of the platform’s alleged operators and “criminal mastermind”, was arrested in Greece with the accusations of having laundered large amounts of cash through BTC-e over the last six years. Authorities later seized the BTC-e website and the US government unsealed an indictment against BTC-e and Alexander Vinnik, imposing a $110 million fine for unlawful money services business and money laundering. BTC-e’s data center was also raided by the FBI on that same day, seizing “all equipment, the servers contained databases and wallets” from their service.
However, just one day after the incident, BTC-e announced that they would be up and running in the next five to ten days. They also dismissed the accusations that Alexander Vinnik was an operator at the exchange.
Although there wasn’t a follow through, the platform is still down, more recent announcements from the team said that the company will abandon the BTC-e brand to return under a new name. They also informed that they had “managed to gain control of 55% of the funds” and that a new token would be issued (“BTE”) in order to refund users, a technique pioneered by the Bitfinex exchange, who managed to return all funds to its users in an incredibly quick and efficient manner.
Decentralized exchanges to the rescue?
Although BTC-e has pledged to return funds, the problems caused centralized exchanges are becoming incredibly frequent.
It only makes sense that decentralized currencies be traded through decentralized exchanges. Situations similar to the BTC-e incident have happened throughout cryptocurrency history and one easy way to solve them is through the use of decentralized exchanges.
In the Bartedex, and other decentralized exchanges, the funds aren’t held by a third party and trades occur directly between users. This cuts down the need for operators to handle your money (and charge fees). Not only that, decentralized exchanges provide a greater level of privacy and fix problems like server downtime since there isn’t a central server, but rather a network of nodes hosting the exchange.