In a bid to help fight money laundering, Binance exchange has frozen multiple accounts with funds belonging to Wex Exchange. The latter is a Russian based crypto exchange that has been facing allegations of money laundering.
At the center of it, Binance is citing money laundering claims as the main reason that led to the freezing of the Multiple Wex accounts. Changpeng Zhao CEO of Binance announced the action taken against Wex exchange accounts via Twitter. He said;-
“The identified accounts have been frozen anyone with grievances please report to law enforcement agencies and get a case number. We are working with the law enforcement agency and will do what we can.”
From Zhao tweet, it seems some of Wex funds were being moved through Binance exchange. Although investigations are underway, Binance management came to an agreement that Wex exchange could be using its platform to launder its money. Binance froze Wex Exchange accounts after a user raised concerns of its platform been used to facilitate money laundering.
User’s Unable to Withdraw Funds
Further on according to Wex users, their grievances cement the money laundering claims. Many have taken to social media platforms to air out their grievances. According to the victims, they were locked out of their accounts and can’t withdraw or make use of their funds. Besides the social media accounts, the victims have created a website dedicated to getting solutions for their problems. But their primary goal is to get the whereabouts of the fraudsters and file charges against them. Through the website, Wex former clients have had meeting point to discuss the way forward on how they will get their funds back. The site is also available for sharing information.
Wex exchange woes started after its founder Alexander Vinnik was arrested for his company’s involvement in a $4 billion fraud case. At the time of his arrest, his company was known as BTC-e. Although his arrest caused a lot of uproar in the community, the firm later rebranded to Wex exchange. Under Wex, the crypto exchange set up a new server in Zealand. Vinnik was arrested in July 2017 and is still in custody.
After its re-branding activities on its platform began showing more tell off signs of money laundering. It’s also under Wex that Bitcoin prices were inflated. The prices were higher than the global norms than average rates.