All news

Interior Ministry ends investigation into first Russian crypto exchange theft case

An ex-system administrator of the WEX cryptocurrency exchange is charged with embezzling the funds of World Exchange Services Pte. Ltd totaling over three billion rubles

MOSCOW, April 13. /TASS/. Investigators from the Russian Interior Ministry have completed their investigation in the first-ever case in the country involving the embezzlement of a cryptocurrency exchange’s assets, the ministry’s press center told TASS.

An ex-system administrator of the WEX cryptocurrency exchange is charged with embezzling the funds of World Exchange Services Pte. Ltd totaling over three billion rubles ($36.7 mln).

"An investigator in the organized crime investigation division of the investigative department of the Russian Interior Ministry has completed a preliminary investigation into the criminal case with respect to the former system administrator of the WEX cryptocurrency exchange. He is charged with embezzling property belonging to World Exchange Services Pte. Ltd on a particularly large scale," the press center informed.

According to the investigation, in October 2018 the offender blocked access to consolidated settlement accounts and addresses of cryptocurrency wallets controlled by the legal entity. "He prevented the access of users and owners of the exchange to the cash and digital financial assets in its circulation, having embezzled property worth over three billion rubles," the ministry said.

The investigator froze the real property of the accused as well as the funds voluntarily contributed by him amounting to more than 4.3 bln rubles ($52.6 mln). The criminal case with the prosecutor-approved indictment has been sent to the court for consideration.

WEX cryptocurrency exchange users have the right to file a claim against the defendant - World Exchange Services Pte. Ltd, the ministry added.