Bitcoin Price Analysis

Investigating the strange exchange conditions of WEX digital currencies; Another scam?

Users of Wax Exchange (formerly BTC-e) have been struggling to withdraw money from their accounts for several days, and they have become skeptical about this digital currency trading platform.

One of the users of this exchange called Alireza Mousavi “Dear Wax, when can we withdraw from our account again?” He asked on Twitter. And another user named Ehsan Mahmoudi “Why has the withdrawal option been disabled?” Another user named حسن گسینوف He also raised the same problem.

The reason for the complaints of these users is the strange activities that have recently been observed in the transactions of this exchange. Earlier this week, the price of Bitcoin at the Wax Exchange rose to $ 9,000, while in the global market it was around $ 6,100.

This could be due to a number of reasons, such as the exchange fee’s fees for withdrawing common currencies, fraud and debt problems for bitcoins sold. At the time of writing, the price of Bitcoin at Wax Exchange is about $ 9,180, which is about $ 1,800 higher than the world record price.

Investigating the strange exchange conditions of WEX digital currencies;  Another scam?

Last year, the Wax Exchange was launched with a new structure to revive the BTC-e exchange. The BTC-e exchange has been trading Bitcoin for a long time, which fell into a scam and eventually closed. In the case, a Russian man named Alexander Winik was arrested on charges of money laundering in BTC-e for billions of dollars and fined $ 110 million for an exchange.

Although Wax claims to have nothing to do with BTC-e, the design of the website and its business partners are very similar and provide exactly the same services to former BTC-e customers.

The exchange announced on its official Twitter account that customers’ funds are in complete security; However, in addition to customer questions on Twitter, discussions about withdrawal problems continue in the exchange rooms of the exchange’s website.

Unanswered questions

Investigating the strange exchange conditions of WEX digital currencies;  Another scam?

Dmitry Vasilyev (owner of Wax Exchange Operator) announced on Facebook on July 12 that the price difference was due to the actions of Dmitry Sutormin (former director of Wax).

Vasiliev explained:

Sutormin is the vice president of the Russian Association for Cryptocurrencies and Blockchain and, of course, a venture capitalist. He has sold a lot of codes (WEX Codes) and so this number of codes is now very much available in the market which has reduced its price and those who bought these codes now want to buy bitcoins and this has caused Rising transaction rates in the exchange; Because the number of people who want to sell their code is small.

However, in correspondence with CoinDesk, Vasilyev stated that he was not sure what role Sutormin had played in recent events; Because after that, the subject lost some of its authority in an exchange office. Of course, he did not elaborate further on this.

Interestingly, Sutormin told the Telegram that he had nothing to do with wax and had never worked there.

He stated:

I just bought and sold my personal code wax; In fact, I was one of the customers of this exchange.

When asked why Wax sold his codes, he said:

The digital currency market is incredibly exciting, and so am I. This business is very popular in Moscow.

RBK (Russian News Agency) also recently investigated the matter. To do this, one of the agency’s reporters, Andrew Zakharov, was commissioned to make a deal and pretend he wanted to buy a lot of bitcoins. In this way he could communicate with Sutormin, and of course Sutormin introduced him to other people to transfer money.

Earlier this week, a Russian digital currency website called Coin Radio (CoinRadio) Details the lawsuit filed by one of BTC-e’s former clients, Pimporn Carty.

Karti had done this before and was able to regain more than the 11,000 light coins he had lost. For this reason, before the collapse of Wax, he wanted to revive the funds he already had in BTC-e. Although Vasiliev’s Facebook post mentioned that a hearing was scheduled for July 12, it was not clear whether a hearing was held at all and, if so, what the outcome was.

Digital site reviews

According to our research, the main reason for this is the large supply of wax codes to the market, which has drastically reduced its price. But this high supply of wax codes can be the result of important events within the wax company, and the possibility of fraud within the company is not far from the mind.

Investigating the strange exchange conditions of WEX digital currencies;  Another scam?

The above photo is related to an Iranian exchange site. Until last week, the price of each wax code was almost one dollar and it did not differ from Tetra in terms of Rials. But over the past few days, the price of this code has come a long way with a dollar. Also, as you can see, the difference between the purchase and sale price of the site is very large, which shows that the original value of this code has decreased so much that this exchange can not reduce the difference between the purchase and sale price. In fact, it can be said that the value of the wax code has decreased by about 30 to 40%, and this must have been due to a major event within the company.

Who will be responsible for customers?

According to Vasiliev, it is unclear who is in charge of Wax at the moment.

RBK also reported that Vasilyev intended to sell the exchange to Dmitry Khavchenko (a former Ukrainian war volunteer and a militant in the Crimean War).

Khavchenko told RBK that he also wanted to move Wax’s office to the Crimea and register the company in the war-torn region of Ukraine called Donbass.

According to RBK news sources, Khavchenko and some others involved in the conflict in Ukraine now run the exchange. Some of these individuals appear to be members of Konstantin Maloyev’s group (known in the press as a supporter of the militant group in eastern Ukraine).

However, Wax’s official Twitter account has denied selling the exchange, raising questions such as “Who should be responsible for customers,” “Who is responsible for what happened,” and “Why did prices rise earlier this week?” Has not answered.


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