The WEX exchange may be on the verge of collapsing as trading has ground to a halt and funds have been noticed leaving the cold wallets in an attempt to sell on Binance and move on. The exchange chat draws in users attempting any type of withdrawal, and one has even issued death threats against the WEX team.
For months now, the exchange, which has only run for a year, has been viewed as unstable, not allowing withdrawals in dollars. For that reason, some users are attempting to buy Bitcoin (BTC) or Tether (USDT), possibly awaiting permission from the exchange to move the funds. This has led to BTC prices of $8,624.99, while USDT, a dollar-pegged coin, trades at $8.92.
After the withdrawal of funds was noted and reported, Binance immediately reacted. As of October 30, the suspect accounts have been closed:
While Binance is not a KYC exchange and accounts are semi-anonymous, a connection could be made to the WEX wallets.
Beyond appealing to the authorities, WEX users have been gathering on social media and forums. A Reddit community member has suggested the launch of a class action lawsuit against WEX. Most of the exchange management is known, with Russian nationals scattered across the globe comprising the bulk of the leadership team.
Users have managed to withdraw a tiny amount of funds, but for now, trading has faded to nothing. Users in the exchange chat are reporting that the platform no longer accepts deposits or allows withdrawals:
“Warning! We can not deposit or withdraw now,” user catbuibk wrote on October 30.
In the past weeks, while the exchange wallets were still open, some users tried to sell USDT at the anomalous rate of above $7 and withdraw dollars. However, they soon found out fiat withdrawals had been disabled for months and making quick gains from USDT was impossible.
The latest developments around WEX seem to mark the end of the marketplace. They come just days after MapleChange, a small-scale Canadian operation, reported a hack and shuttered all markets.