Accounts indirectly associated with controversial crypto platform World Exchange Services (WEX) have been frozen by Binance. 93,000 ETH coins were transferred to this exchange from two WEX cold wallets, and users are concerned that their funds may be lost forever.
Thanks to the transparency of the ETH blockchain, users were able to trace two wallets associated with the controversial successor BTC-e, which moved large amounts of ether to Binance, through 25 transactions in August and October.
Following the disclosure of the transfer of these funds from WEX, Binance decided that these accounts should be identified and blocked to prevent funds laundering by WEX.
Apparently, the site inherited from BTC-e its manner of conducting crypto trading using not entirely clean methods. As a result, it continues to come under criticism for its inflated prices and exorbitant fees for converting cryptocurrency into fiat, and has also attracted increased attention from law enforcement agencies.
The exchange has been unstable in recent months. Fiat withdrawals are completely unavailable and the platform no longer accepts deposits. Users try to buy Bitcoin (BTC) or Tether (USDT) in hopes of withdrawing funds from the platform, but this only results in an inflated price for BTC, which was listed at $8,568.88 on the platform, while the USDT stablecoin is trading at $8.92.
The number of complaints against WEX continues to grow, with hundreds of frustrated users voicing concerns about suspicious transactions on the platform in various Telegram chat groups. A group with over 400 members has already emerged that is focused on filing lawsuits against WEX. There is another group with over 1,000 active members who have banded together in an attempt to recover their funds from the controversial site.
With users unable to withdraw most of their coins, the crypto community speculates that there is a large amount of funds that may have been stolen, in addition to the 93,000 ETH (approximately $18 million) transferred to Binance.
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