February 7, 2023

Many scams occur in the crypto industry, especially BTC. If the investor is not careful, they will fall prey to cybercriminals who pretend to be legitimate projects or platforms. Sometimes, some exchanges may encounter hurdles and cause huge losses for investors. This was the case with WEX, BTC-e and other exchanges that caused people to lose money.

Vinnik is a Russian national known as the operator of BTC-e, one of the primary Bitcoin exchanges. The exchange is linked to the Mt.Gox hack, the first Bitcoin exchange with 744408 BTC attack.

However, there was no recovery for the stolen funds, and the exchange shut down in 2014. Vinnik, for his part, did not accept the operation of BTC-e but said he was one of the exchange’s employees.

However, in 2017, the US authorities shut down the BTC exchange and confiscated its servers. Vinic was arrested while staying with his family on a beach in Greece. Since the time of his arrest, there has been a drag between the three countries, the United States, Russia and France. They are vying for Vinnik’s extradition, with each pointing out different allegations against him.

report from CNN It revealed the extradition of cryptocurrency exchange operator Alexander Vinnik to the United States from Greece. The French cryptocurrency exchange operator has been detained, but his French lawyer, Frederic Bellot, has revealed his extradition.

After several attempts to extradite Vinic, the US authorities canceled her request a few weeks ago. With the order cancelled, Vinnik can be transferred to Greece and then to the United States.

In 2020, a California court indicted Vinic with several criminal offenses. These include ransomware scams, computer hacking, hacking, drug distribution rings, identity theft schemes, and corrupt government officials.

France sentences Vinic to 5 years in prison for bitcoin fraud

France later succeeded in 2020 where it acquired Vinic, and a French court sentenced him to 5 years in prison. Vinnik has been accused of money laundering. But other charges such as conspiracy, extortion and defamation of automated data processing systems were dropped. The Paris Court of Appeal also upheld the prison sentences.

Vinnik’s lawyer, Pilot, did not explain the legal mechanism that the US authorities applied during the extradition request. But he stated that if the United States withdraws its request, it will reactivate Greece’s request.

WEX, a descendant of the crypto exchange, launched a few months after BTC-e closed. WEX had their trading pairs and their website design quite similar to BTC-e. He has gained access to the BTC-e user base. Also, it promised that it would gradually return to BTC exchange users all their losses before the platform closed.

Reports indicate that BTC exchange operator Alexander Vinnik has been extradited to the US
Bitcoin remains in sideways momentum | source: BTCUSDT on TradingView

During the summer of 2019, WEX halted its operations. Users have been complaining about withdrawal issues. They also note that the price of BTC is higher than what other exchanges were offering.

In addition, the CEO of WEX, Dmitry Vasiliev, was again arrested in different countries. These include Croatia, Italy and Poland.

Featured image from Pixabay, chart from TradingView.com

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