BTC-e Claims to Recover Just 55% of Funds, May Conduct an ICO

45% of the funds held at BTC-e before the US authorities took it down are now in frozen fiat accounts.

The BTC-e team has issued another update on the exchange’s dire situation through its social media accounts. They claim to have gained back control of 55% of all clients funds held at BTC-e before the US authorities took it down.

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They explain that the other 45% are mostly in fiat (USD, EUR, RUR) accounts no longer under their control. They also say that they plan to sue those who seized these accounts and thus hopefully recover some of the money.

The BTC-e team also has a more elaborate plan to compensate its clients which includes an ICO. They write: “At the moment, we are negotiating with a group of investors (an investment company), about buying and prompt launch of the service and repaying debts to customers.

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All liabilities for fiat (USD, EUR, RUR) will be transferred to BTE tokens (1 BTE is 1 USD) at the exchange rate on the date of conversion. Probably, for more operative closing of promissory notes, ICO will be held on BTE tokens.

You will be written off 45% of the balance of coins and credited with 45% of BTE (1 BTE is 1 USD). If you have a balance in BTE, then you will be credited with 45% in coins (the sum will be divided into 7 different coins equally BTC, LTC, NMC, NVC, PPC, ETH, DSH) and write off the amount of 45% in BTE. Upon all recalculations, all users will have the opportunity to withdraw 55% of their funds from the system.”

Interestingly, they add: “The investment company works in compliance with KYC, AML and the licenses required for this activity, so all users will need to undergo verification.” Considering that BTC-e was allegedly a major money laundering tool for hackers, ransomware attackers and other cyber criminals, it is unlikely that many of these types of clients will be willing to undergo such a process with a system which could fall into the hands of the FBI sooner or later.

The tentative start date for this process is the end of August.

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