Receive all Cointelegraph news immediately in Telegram.
BTC-e is considering an ICO to help it repay user debts as it emerges 45% of funds are still “apprehended.”
Embattled cryptocurrency exchange BTC-e is considering issuing tokens via an ICO to cover user losses similar to Bitfinex.
In a fifth Russian-language update on Bitcointalk today, the exchange said it now had control of 55 percent of its reserves, with 45 percent remaining under control of the FBI.
“For the past 14 days we’ve fought for your funds and managed to gain control of 55 percent (depending on the exchange rate),” the post begins. “The remaining 45 percent is apprehended funds, most of which are fiat.”
BTC-e is facing mounting pressure from US law enforcement agencies and users alike, who have been shut out from their accounts since last month.
The FBI had seized databases and wallets from the exchange, while the US Securities and Exchanges Commission (SEC) said it had wanted to fine it $110 mln for disregard of AML laws applicable to operators serving US customers.
The update continues with staff saying it was “in talks with a group of investors” over a potential takeover and subsequent payout to users. It added it would no longer be able to continue trading under the BTC-e brand.
Regarding the 55 percent available funds, these, it says, will be converted to new BTC tokens.
“To achieve quicker settling of our debt obligations, BTE tokens may undergo an ICO,” the update adds.
The mystery investment outfit in question works in full compliance with relevant KYC and AML standards.
A rough English translation of the update is available here.
Follow us on Facebook
For updates and exclusive offers, enter your e-mail below.
Thank you for contacting us! We will reply to you as soon as possible.
Thank you for your interest in our franchise program.
We are considering your request and will contact you in due course. If you have any further queries, please contact: