10,000 Bitcoin Withdrawn From Wallet Of Defunct Crypto Exchange Wex, Formerly BTC-e – Exchanges Bitcoin News

A large amount of cryptocurrency held in a wallet linked to the crypto exchange Wex, the successor to the infamous trading platform run by alleged money launderer Alexander Vinnik, has moved for the first time since 2017. The 10,000 bitcoins in question, worth over $165 million, have been transferred to new addresses in multiple transactions.

Bitcoin stored in dormant Wex wallet moves for first time in five years

The unknown holder of a bitcoin wallet linked to the now-defunct Wex, once the largest cryptocurrency exchange in the Russian-speaking market, has withdrawn 10,000 coins. Funds at this BTC address were last moved in September 2017, when the same amount was sent out.

Wex was established that year, following the collapse of BTC-e, which closed following the arrest in Greece of one of its operators, Alexander Vinnik. The Russian IT specialist, who is currently in US custody, is accused of laundering up to $9 billion through the stock exchange.

The transfer of the digital money was first noticed by Sergey Mendeleev, founder of the cryptocurrency exchange Garantex and CEO of the defi banking platform Indefibank. He revealed the discovery on his Telegram channel, according to a report by leading Russian crypto news outlet Bits.media. The coins moved on Wednesday 23 November.

Several transactions were made, including two likely test transfers of small amounts, before the 10,000 BTC was sent. 3500 BTC was transferred to one address and 6500 BTC went to another, probably a change address. The value of the withdrawn cryptocurrency at the time of writing exceeds $165 million in fiat equivalent.

Around $450 million was lost when Wex went offline in 2018. The platform is considered the successor to BTC-e, which allegedly processed money from the Mt Gox hack and other cybercrimes. It was run by World Exchange Services, a company based in Singapore and co-founded by Aleksey Bilyuchenko, former partner of BTC’s administrator Alexander Vinnik.

Vinnik was arrested in the summer of 2017 while on holiday in Thessaloniki. In addition to the United States, France and Russia also sought his extradition. In December 2019, Greek authorities handed him over to France where he served (on remand) a five-year sentence for money laundering. Vinnik was then returned to Greece who immediately transferred him to the United States where he now faces multiple charges.

In March of this year, Russian law enforcement arrested a crypto entrepreneur associated with an unidentified crypto exchange on suspicion of embezzling funds and property. At the time, Sergey Mendeleev claimed that the arrested man was none other than Bilyuchenko. His ownership of Wex was revealed in a report by the BBC.

Dmitry Vasiliev, another co-owner and former CEO of Wex, was arrested in Poland in August 2021 and later released by Polish authorities before returning to Russia. In June 2022, he was also detained at Zagreb airport upon entering Croatia, on a red warrant issued by Interpol at the request of Kazakhstan where he is wanted on fraud charges.

Last November, Mendeleev revealed that the Russian Interior Ministry had failed to act on a request by Wex users to help block and seize crypto funds removed from a wallet controlled by the exchange. Over 10,000 ETH, worth almost $46 million at the time, were withdrawn and transferred to other platforms.

Who do you think pulled the cryptocurrency from the wallet linked to Wex and BTC-e? Share your thoughts on the matter in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’ quote: “To be a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.