In a recent update, BTC-e cryptocurrency exchange has announced the action plan to return the funds to the customers, Forklog reported.

The exchange recently announced its intention to return customer funds after law enforcement agencies seized its servers, database, and funds and even imposed $110,003,314 civil money penalty for willfully violating U.S. anti-money laundering (AML) laws.

According to the latest update, BTC-e said that it has managed to gain control of 55% of the funds. It said that it would not be possible for it to continue operations under “BTC-e” brand name due to unresolved issues with law enforcement agencies. As such, it is currently negotiating with an investor group to buy and start a service early and repay the debts to customers.

BTE token

In order to repay customers, BTC-e is going to create “BTE” token and hold an Initial Coin Offering (ICO). The details provided are as under (Google translated):

• “As we transfer all the balance sheets of the investment company, the balances will be recalculated.
• The recounting procedure, taking into account the available 55% of funds:
  • All liabilities for fiat (USD, EUR, RUR) will be transferred to BTE tokens (1 BTE is 1 USD) at the exchange rate on the date of conversion. Probably, for more operative closing of promissory notes, ICO will be held on BTE tokens.
  • If you have on the balance the amount in koin, then you will be written off 45% of the balance of coins and credited with 45% of BTE (1 BTE is 1 USD). At the exchange rate on the day of conversion.
  • If you have a balance in BTE, then you will be credited with 45% in koin (the amount will be divided into 7 different coins equally BTC, LTC, NMC, NVC, PPC, ETH, DSH) and write off the amount of 45% in BTE.
  • Upon all recalculations, all users will have the opportunity to withdraw 55% of their funds from the system.
  • The investment company works in compliance with KYC, AML and the licenses required for this activity, so all users will need to undergo verification.
  • Tentative start dates end of August.
• All debt obligations will be closed primarily from operating income from the investment company's commission, as well as from the funds we plan to sue from those who illegally arrested them.

The closing of the debt will be based on the principle of buying BTE tokens from the market.”

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