Major Russian exchange freezes $4m of user assets, citing money laundering

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As an experienced financial analyst, I find the situation with Russian cryptocurrency exchange Beribit deeply concerning. Having followed the development of this case since March, when searches were carried out at their Moscow offices, I’ve seen how the platform has failed to uphold its promises and provide refunds to customers.

Russian cryptocurrency platform Beribit is under scrutiny following claims of fraudulent activities after declining to return funds to its users.

According to Russian media outlets, the crypto exchange authorities are requesting proof of lawful income from victims of the Beribit scam before processing their debt reimbursements. So far, only 19 out of the 100 affected clients have been successful in recovering their funds.

Based on certain calculations, approximately 400 million rubles, or around $4.3 million, could be tied up in Beribit. Previously, platform representatives acknowledged damages worth roughly 24.9 million rubles, which translates to about $263,000. However, this represents only a fraction of the total funds currently unavailable.

Eleven clients have cleared the audit and are anticipated to receive their funds soon. unexpectedly, during the early hours of the night, these clients received messages from Beribit requesting them to present proof that they hadn’t been using exchanges for money laundering activities.

Crypto wallet owners are growing suspicious that the exchange might be modifying terms, requesting private details, and potentially planning to misappropriate funds under the guise of these actions.

Back in March, searches were conducted at Beribit’s Moscow offices, leading to a scandal. In April, the exchange encountered issues with the withdrawal of cryptocurrency, which they attributed to management changes and reporting discrepancies. Following this revelation, an angry mob of customers gathered outside Beribit’s office, prompting the company to pledge full compensation to its users.

Yet, up to this point, Beribit has failed to keep its commitments, leaving users frustrated as they encounter difficulties in processing fund withdrawals from the platform.

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2024-05-03 20:26