In Moscow, investors of the crypto exchange Beribit were given chocolates instead of their money back. Around 400 million rubles, or roughly $5 million USD, are currently frozen in accounts of the exchange. For two days, clients have been protesting outside the office, demanding their funds be returned.
As a researcher studying recent events in the cryptocurrency market, I came across an interesting development. Approximately fifty clients of the Russian crypto exchange Beribit expressed their intention to organize a demonstration at the company’s headquarters in Moscow.
Based on information available, the disturbances initiated at Federation Tower on April 26, which is where Beribit’s office is located. The cause of the unrest was clients demanding the return of around 400 million rubles, money they had been unable to withdraw for an extended period.
Investors have expressed disappointment that withdrawing their funds can be a lengthy and complicated process, whereas making deposits is usually straightforward and swift.
As a crypto investor, I found myself in a chaotic situation at the Beribit exchange. The staff tried to make their exit as the panicked investors surged forward, but their paths were blocked. Frustration turned to anger, and soon enough, law enforcement was called to restore order and ensure everyone’s safety.
As a researcher investigating a circulating video on Telegram, I’ve come across an allegation that instead of cash, dissatisfied customers were given chocolates in compensation.
As an analyst, I’ve come across a noteworthy incident involving Moscow-based crypto exchange Beribit. It appears that over $4.3 million in investor funds are currently unreachable, with depositors becoming increasingly frustrated after two consecutive days of protests at the exchange offices. Instead of handing back the much-desired money, the exchange reportedly offered chocolates as a substitute.
— NEXTA (@nexta_tv) April 27, 2024
Mash, a Russian online newspaper, first reported the situation on Telegram.
According to Gazeta.ru’s report, exchange employees pledged to return half of the investments right away, while the rest was promised to be repaid within a timeframe of one to fifteen days.
As a crypto investor, I’ve been keeping an eye on updates from Beribit exchange. On April 26th, their official Telegram channel made an announcement that left me concerned. They disclosed that after some management changes within the company, discrepancies in the balance sheet were uncovered. In response, they initiated a comprehensive audit process to address these issues and ensure transparency for their users.
As a crypto investor, I’ve encountered a situation where the exchange I use has informed us that all clients needed to complete KYC ( Know Your Customer) and AML ( Anti-Money Laundering) verification processes. Consequently, there’s been an accumulation of requests for deposits and withdrawals, leading to a temporary delay in processing times.
I’d like to add clarity on the point raised by Beribit. Once clients complete the Know Your Customer (KYC) and Anti-Money Laundering (AML) verification process successfully, they will regain full access to utilize their accounts without any restrictions.
In the midst of this chaotic situation, I’ve come across reports of a proposed bill in the Russian State Duma aiming to restrict crypto exchange activities. If enacted, this legislation would not apply to crypto transactions or legally registered mining entities. Furthermore, it intends to prohibit cryptocurrency advertising.
On the other hand, a different lawmaker contended that outlawing crypto exchanges could pose a risk to Russia’s security, pointing out the significance of cryptocurrencies in acquiring weapons and defensive resources from non-Western countries, and bypassing sanctions.
Recently, the offices of Beribit, a registered cryptocurrency exchange that supports ruble-crypto, P2P, USDT, and asset transactions, have been subject to investigation by law enforcement agencies. Searches were carried out in March.
During this examination, there was a reported temporary shutdown of the website, allegedly connected to ongoing probes related to a terrorist incident at Crocus City Hall.
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2024-04-28 17:52