WEX Funds Frozen Over Money Laundering Suspicions

After some users declared that the troublesome crypto exchange platform WEX had to do with money laundering activities, Binance decided to freeze WEX’s funds as per the Chief Executive Officer of Binance, Changpeng Zhao.


This move was made in reaction to a crypto trader called John James who posted a warning on Twitter. Moreover, Zhao replied that Binance had indeed frozen funds that were sent from any wallets that belong to WEX. He urged the user to report the alleged activities to the police and assured the individual that he will also work with him in regards to the matter.

Reacting to Claims

Zhao continued on to say that this is a situation that the company simply has to deal with, in deciding what to do with a mess that was entirely created by another platform. They did what they could and they don’t even know all of the details of the situation. He also noted that any laundered funds would be using decentralized platforms in the near future in order to avert from any freezes that conventional exchanges will influence.

This major dispute puts WEX, which is based in Russia, in a tricky spot. The owner, Dmitrii Vasilev, explained how WEX had been a follow-up to BTC-e.

BTC-e continues to be inextricably connected to a major $4 billion investigation of fraud by the United States and Greece. Its founder, Alexander Vinnik, remains in custody after he was arrested in July of last year.

WEX had long since shown a few suspicions signs when it was online, with BTC drastically increasing in prices on the platform deviating from international norm.

Last July, it seems WEX had stopped any withdrawal of funds, despite the fact that they had claimed to have finished their maintenance, which made some users deduce that the exchange might be a scam.

1 year ago

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