BTC-e Goes Bitfinex? Bitcoin Exchange Could Issue Tokens in Bid to Relaunch

Bitcoin exchange BTC-e has said it will return under a new name and issue a token to refund users after it was closed by U.S. authorities.

AccessTimeIconAug 9, 2017 at 12:00 p.m. UTC
Updated Aug 18, 2021 at 6:39 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

Bitcoin exchange BTC-e will return under a new name and issue a token in order to refund users, according to a forum account tied to the platform.

The comments come after BTC-e, one of the longest-running and arguably most secretive of the world's cryptocurrency exchanges, was shuttered by U.S. authorities late last month. After arresting one of the exchange's alleged operators, officials handed down more than $100 million in fines and seized BTC-e's web domain.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • However, the exchange's remaining staff, communicating through a long-held account on the Bitcoin Talk forum, have pledged to return despite the crackdown, later claiming that it was able to secure access to at least some of its funds.

    In the latest statements, BTC-e said it "managed to gain control of 55% of the funds", with the remainder having been confiscated.

    The anonymous spokesperson said the platform is working with an unnamed group of investors to revive the site, adding that the BTC-e brand would be abandoned "due to unresolved issues from the Office of Financial Crimes of the US Treasury." The exchange said the rebranding process would begin at the end of August, and promised future statements on the detail of the plan.

    BTC-e also aired the intention to issue a new token, dubbed "BTE," in an effort to return funds to users. Customers would be refunded as the exchange buys back those tokens from the market – echoing how Bitfinex repaid its users following a $60 million hack last summer.

    The exchange's staff explained (in a translated statement):

    "All liabilities for fiat (USD, EUR, RUR) will be transferred to BTE tokens (1 BTE is 1 USD) at the exchange rate on the date of conversion. Probably, for more operative closing of promissory notes, ICO will be held on BTE tokens. If you have on the balance the amount in [coin], then you will be written off 45% of the balance of coins and credited with 45% of BTE (1 BTE is 1 USD). At the exchange rate on the day of conversion."

    Holders of BTE would later be credited through seven different cryptocurrencies – bitcoin, litecoin, namecoin, novacoin, peercoin, ether and dash – "and write off the amount of 45% in BTE", according to the post.

    To receive their tokens, users will have to verify their identities, the exchange detailed, citing investor requirements.

    "The investment company works in compliance with KYC, AML and the licenses required for this activity, so all users will need to undergo verification," it said.

    IOU image via Shutterstock

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.