Bitcoin In Trading Range

The BTC-e debacle continues with the U.S. government seizing the exchange’s website. Now, BTC-e has its data center seized by the FBI. On CoinDesk, we read:

(…) in a statement on the Bitcoin Talk forum (that was tweeted out via its official account), representatives for the exchange issued new comments, including a pledge to return users' funds.

The statement read:

"For all those who buried us, I will remind you that the service has always worked on trust and we are ready to answer for it. The funds will be returned to everyone!"

The message also confirmed that BTC-e's data center had been raided by the U.S. Federal Bureau of Investigation on July 25, during which time the agency "seized all equipment, the servers contained databases and purses of our service."

Notably, the statement pushed back on claims that Vinnik was an employee of BTC-e, with the operators stating: "officially declare – Alexander was never the head or employee of our service." In announcing the charges against Vinnik, the US Department of Justice had asserted that he was the "operator" of BTC-e.

The BTC-e statement went on to say that more information would be released in the next two weeks, including an account of "how much money fell into the hands of the FBI and what amount of funds is available for return."

It is unclear at this time what will actually happen with the funds locked into BTC-e accounts. BTC-e has already been fined $110 million and we don’t yet know whether the funds will be used as collateral or if any part of them will be released to customers. The way things look now, it seems unlikely for BTC-e to spring back from this. We wouldn’t expect to see any definitive statements on the issue of funds from the U.S. government any time soon. Bitcoin’s reaction to the BTC-e news has been quite interesting.

For now, let’s focus on the charts.

Bitcoin BitStamp chart

 

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