The Russian Ministry of Internal Affairs rejected a request made by Wex customers to block the removal of cryptocurrency funds from wallets controlled by the now-defunct cryptocurrency exchange. Over 10,000 Ethereum Has recently withdrawn from the wallet and transferred to other platforms.

Wex victim tried to freeze $46 million in cryptocurrency lost due to Russian exchange bankruptcy

The investigation department of the Russian Ministry of Internal Affairs (MVD) refused to take action at the request of the victims of the cryptocurrency exchange Wex to take measures to confiscate the digital assets worth 45.9 million U.S. dollars withdrawn from their wallets in September.The details are shared Indefibank CEO Sergey Mendeleev cited an official document from the department on social media.

The former Wex user provided a detailed plan to MVD, explaining how to transfer funds from the wallet to the other encryption platform Forklog ReportThey also submitted data from analysis tools to prove that the tokens had been stolen, and notified the authorities that they had contacted Binance, part of which was 97.8 Ethereum, Sent, sent. The cryptocurrency exchange has frozen these assets for seven working days.

Binance’s current procedures allow the company’s security department to temporarily freeze funds after receiving convincing evidence of theft. Then the party requesting measures must contact the relevant law enforcement agency and return a police report to the encrypted trading platform. Binance will then cooperate with investigators to resolve the case.

Wex’s clients mentioned that the Russian Ministry of Internal Affairs requested the seizure of stolen funds. However, according to the department’s official response on October 25, the victim’s statement requires further investigation before the authorities can take any action. MVD believes that it is too early to make a decision to confiscate assets during the preliminary investigation and based on available information.

The cryptocurrency exchange Wex is successor notorious Bitcoin-e, Which was once Russia’s largest crypto trading platform, went offline four years ago. In September of this year, it was reported that the former CEO of Wex Dmitry Vasiliev (Dmitry Vasiliev) Arrested In Warsaw.They later comfirmed The Polish authorities also announced that they are reviewing an extradition request submitted by Kazakhstan, which has been accused of fraud.

Wex was launched in the fall of 2017 and reportedly had a daily turnover of US$80 million, then suddenly stopped withdrawing funds in the summer of 2018 and eventually went bankrupt. According to estimates by a group of users cited by Forklog, the total loss exceeded 400 million U.S. dollars, and Vasilyev was suspected of embezzling 200 million U.S. dollars.

Encrypted news media reported that 100 Ethereum It was withdrawn from Wex Wallet in mid-September. The publication states that this is the first change in these funds in the past three years. Wallet balance, 9,916 Ethereum It was worth 30 million U.S. dollars at the time and was transferred to a new address a few days later.

Do you think Wex customers will convince the Russian authorities to take action to freeze and seize funds withdrawn from exchange wallets? Tell us in the comments section below.

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