WEX Exchange Users Unite in Push for Fund Withdrawals
Traders on WEX are seeking legal redress for their blocked funds, hoping to instigate a criminal investigation against the exchange owners.
The fate of the WEX exchange seems to mirror that of its previous incarnation, BTC-E, where the FBI ended up seizing assets and arresting its director, Alexander Vinnik. Now, predominantly Russian users of the platform are getting organized with collective demands in an attempt to get locked funds released. Currently, the exchange allows no Bitcoin (BTC) withdrawals.
The WEX platform has been removed from the CoinMarketCap data for BTC, but before that, it showed a spike in prices, with premiums exceeding $1,000. The reason is that cash cannot be withdrawn from the exchange, and users are attempting to withdraw other crypto coins. However, this is turning to be impossible as well, with talks of a WEX exit scam becoming more frequent.
BTC trades at $8,660.12 at the time of writing, while Litecoin (LTC) is above $83. Amazingly, Tether (USDT), another coin favored in attempted withdrawals, trades at $7. This means a certain loss in an attempt to sell and move away from WEX as USDT changes hands at around $0.97 on the open markets.
The WEX exchange has not tweeted since August, and users have mounted a private investigation on social media in the past months. Traders are organizing and investigating on Bitcointalk, trying to figure out the true ownership of the exchange and ways to withdraw funds with minimal losses. A much-maligned person, Dmitry Vasilyev, is still listed as the de facto CEO. However, Russian magazine RBC reported it was possible that ownership had been transferred to Dmitry Khavchenko, a Donbass militia fighter in Crimea a few years back.
The WEX exchange has affected significantly Russian traders but also US-based ones, with most starting to lose hope of ever withdrawing funds successfully and with minimal losses. This looks like a market with no future, with volumes falling down to $400,000, while previous statistics showed it handling between $20 million and $60 million in 24 hours. Thus, WEX looks set to decline just over a year after its launch in the wake of BTC-E’s disintegration. Traders burned by the exchange warn of the risk of similar scams by the exchange team.