WEX Exchange back in hot water as users report police filings

23 Oct, 2018
News
WEX Exchange back in hot water as users report police filings

It appears what may have been expected, is finally coming to fruition. WEX exchange is finding itself in hot water as investors are taking their matters to the law to assist them in recovering their funds that they cannot withdraw. 

WEX Exchange is considered as 'an oddly, overpriced, terribly run exchange operating' on similar conditions as the now defunct BTC-e exchange. BTC-e exchange was shut down by  Financial Crimes Enforcement Network (FinCEN) and fined over $110m for facilitating crimes like drug sales and ransomware attacks along with a separate $12 million fine against its owner, Alexander Vinnik.

Recap: Concerns spread on Reddit over WEX as user claims $11,000 of LTC is lost

WEX exchange appears to be operating much like BTC-e. The Russian exchange has some of the highest fee for withdrawal methods and the most inflated prices on cryptocurrencies. Coindesk reported that most withdrawal methods were not available to users, and the ones that are available are trading way above the normal price of the coins.

BTC trading on WEX is around $8602 and ETH at $319. While the idea of arbitrage trading these might seem like a great idea, USDT was last trading at $7.00

Fiat withdrawals have recently become unavailable, but at one point charged a 45% commission for withdrawing.

Users have become frustrated with the situation and Coindesk reports that a many as 35 reports have been filed through the website of the Russian Interior Ministry.

It appears that WEX is either slowly exit scamming customers or simply cannot handle operational procedures of running a cryptocurrency exchange.

Coinmarketcap currently show WEX exchange has $440,000 daily volume currently with a warning on the page stating " WARNING: All Bitcoin (BTC) withdrawals are currently disabled.

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Read more about: BTC-e/WEX

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