$18 Million: Binance Freezes Crypto Accounts 'Indirectly Linked' to Troubled Russian Exchange, WEX

  • Accounts indirectly linked to controversial crypto exchange, WEX, have been frozen by Binance.
  • 93,000 Ether (ETH) was transfered to Binance by WEX-linked wallets, and users are concerned that their funds might be unrecoverable.

Malta-based digital asset exchange, Binance, has reportedly frozen accounts that received over 93,000 Ether (ETH) from two different crypto wallets. The accounts have been suspended because they are believed to be linked to the controversial World Exchange Services (WEX).

Crypto Accounts Frozen

Leah Li, the global PR manager at Binance, confirmed on October 25th that the accounts were under investigation as WEX users had informed Binance’s management team that they had been unable to make withdrawals from WEX.

The users of the troubled Russian exchange also told Binance that they had been closely monitoring the accounts - as they were keeping track of incoming and outgoing transactions.

According to the WEX users, two wallets linked to the Russian exchange had moved large amounts of ether to Binance (via 25 transactions during the months of August and October). The users are now concerned that they might not be able to get their money back, because it appears that their funds have been transferred to Binance.

User Funds "Unavailable"

As CryptoGlobe reported recently, there have now been at least 35 police reports filed against WEX exchange because many users have not been able to withdraw their funds from the crypto trading platform for over three months.

WEX users have also complained about the exchange’s management and its customer service department. As covered, a crypto trader had claimed in August that he deposited $11,000 in litecoin (LTC) on WEX, however, he was told by the exchange’s representatives that his funds were not “available.”

The crypto investor had also said he was “100% confident” that his funds were unrecoverable - implying that they had been stolen.

Hundreds Of Frustrated Users

Notably, complaints against WEX continue to increase as there are reportedly hundreds of frustrated users that have expressed concerns about the exchange’s operations in various Telegram chat groups.

According to Coindesk, there is a Telegram group with over 400 members that is focused on filing police reports against WEX. There’s also another chat group with over 1,000 active members who are trying to retrieve their funds from WEX.

An estimated 93,000 ETH (appr. $18 million) may be at risk - as these funds have been moved to Binance. There might also be more user funds that could potentially be stolen as WEX’s users have been unable to withdraw most of the crypto assets from the exchange.

Commenting on the situation, Binance PR representative, Leah Li said: 

[We are] not familiar with the specific situation at WEX, [however], we always investigate user claims thoroughly and we will suspend account access if any unusual activity is detected. We are [also] encouraging users who may be impacted to file reports with local law enforcement and ask them to send us case numbers or official notices/letters of investigation. So far, we haven't been provided with any notices yet.

Leah Li

First Time Ever: Caspian Launches Crypto Futures & Options Trading via Partnership with Deribit

Caspian, a “full-stack” cryptocurrency trading, portfolio and risk management network for professional (or accredited) investors, has announced that it has “integrated its platform” with Deribrit, a digital asset futures and options exchange.

Notably, Caspian’s and Deribrit’s partnership involves the launch of one of “the first institutional platforms” that provide both futures and options trading for cryptoassets. At present, Caspian is reportedly working with more than “30 [other] major crypto exchanges and liquidity providers.”

Bitcoin, Ether Options And Futures Trading Via Single Interface

According to the announcement’s press release, Caspian’s digital asset trading desk and portfolio management platform consists of a set of proprietary trading tools - including “OEMS, PMS, and RMS” - that ensure the smooth execution of the “entire lifecycle of a trade.” As noted in the press release, Caspian’s platform is among the first to feature an options and futures trading desk that users can access through a single user interface.

Moreover, Caspian’s proprietary technology allows users to seamlessly “connect into all major crypto exchanges and over-the-counter (OTC) brokers.” Leveraging a “complete suite” of advanced trading algorithms, Caspian’s trading platform has been developed to facilitate “real-time and historical P&L”-based trades, in addition to providing “exposure tracking” and a customer service support desk.

Established in 2016, Deribit offers a “highly liquid marketplace” for bitcoin (BTC) futures and options trading. Deribit also allows users to make withdrawals and deposits on its exchange at no cost. Additionally, Deribit provides its ether (ETH) options and futures contracts and its own perpetual swaps. Traders on Derbit’s platform can also use “up to 100x leverage” at relatively low trading fees.

As mentioned in the announcement, the Caspian platform “connects to Deribit through an advanced API” which has been designed to enable “high volumes [and] low latency.” Clients are provided access to Deribit’s “full options order book.”

Providing Crypto Trading Tools That Are Comparable To Traditional Markets

Commenting on the partnership, Robert Dykes, the CEO of Caspian, remarked:

We are excited to be working with Deribit to make the trading of crypto options and futures possible within the institutional community. Our goal at Caspian is to provide crypto traders and investors the same standard of tools and service that exist in the traditional markets and it's great knowing that the team at Deribit is working towards the same high standards.

Meanwhile, John Jansen, the CEO of Deribit, noted:

Caspian’s comprehensive trading and portfolio management platform provides institutional investors with the market-leading gateway to the crypto markets. We’re thrilled to be working with the team at Caspian.