Topic: [2017-08-02] BTC-E closure: Clients are MT. Goxed by the US. (Read 4121 times)

They do it because they can. Who can stop them?

this will change very soon,the time of the policing the world and a big stick policy is coming to an end
with the rise of China and Iran and Russia,the power will be switching,slowly but surely
meanwhile,the US are enforcing whatever they can to get resources needed to sustain longer
120 millions just for arresting a russian on some ridiculous charges? easy decision

That is the biggest question so far that must be addressed by the US government authorities...are they not respecting the sovereignty of the country where BTC-e is based on? I am sure this will not be the last where the US government seemed to have made an overreach.

I am particularly sad of the many legitimate customers and traders who were using BTC-e. The exchange promised refunds but some of the funds were confiscated by the FBI (if am not mistaken) so refund may not be granted in full.

Maybe it is time that we stand up against this shenanigan by the US authorities and let them realize the right jurisdiction they should follow.

US jumps in basically every country whenever it wants, and from there starts demanding and claiming all kinds of ridiculous things. In reality they have no right to do so, but as mentioned in various other articles as well -- they are policing the world if they think it's necessary to do so. As long as other countries aren't doing anything to stop this, or at least point at the fact that you can't just walk in and start claiming everything, there is no way this will ever stop. Countries blindly following what big daddy is saying are nothing more than a bunch of sheeps with no self respect or authority.

For the first time, the U.S. government attacked a foreign exchange on foreign soil. It closed down the Russian-based exchange BTC-e. (Russian-based refers to ownership, not location.) BTC-e reported, “On July 25…the FBI staff came to the data center…and seized all equipment, the servers contained databases and purses of our service.” BTC-e is charged with 21 violations of U.S. financial law; the Financial Crimes Enforcement Network also hit it with a $110,003,314 penalty. The move was stunning not only because BTC-e is one of the oldest and largest exchanges but also because many now locked accounts are owned by U.S. citizens, non-residents.

Russian Native Alexander Vinnik Indicted and Awaits Extradition

Then, on July 27, the Russian Alexander Vinnik was arrested on vacation in Greece and also charged with 21 counts of financial crime. He is allegedly an owner or operator of BTC-e, although BTC-e denies it. Assessed with a $12 million penalty, Vinnik’s arrest was prompted by a U.S. warrant and he awaits extradition.

Perspective is difficult to come by. News accounts are biased toward painting BTC-e as a criminal site designed to launder ‘dirty’ funds, yet discussion forums brim with panicked account owners who are clearly legitimate traders. And, then, there are gleeful trolls who plant fake stories. BTC-e’s twitter updates contradict government accounts. And no one seems to know key details like what exactly was on the seized equipment.

The secrecy surrounding BTC-e also causes confusion. A statement from the law site J.D. Supra captures it well. “The superseding indictment notes that BTC-e’s website stated that it was located in Bulgaria yet subject to the laws of Cypress [sic]; its managing shell company, Canton Business Corp., was based in the Seychelles but affiliated with a Russian phone number and had web domains registered to shell companies in countries including Singapore, the British Virgin Islands, France and New Zealand.”

One question has a clear answer, however. How can the U.S. claim jurisdiction on foreign soil and force a foreign company to close?

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https://news.bitcoin.com/btc-e-closure-clients-are-mt-goxed-by-the-u-s-a-new-front-in-crypto-wars/