In August 2025, the U.S. Department of Justice (DOJ) filed a civil forfeiture lawsuit for all crypto assets seized from the BTC-e exchange in July 2017. This move concludes a years-long case against one of the largest illegal crypto platforms linked to money laundering and drug trafficking. BTC-e processed over $9 billion in transactions, serving clients from Silk Road and other darknet markets.
The lawsuit filed in the U.S. District Court for the District of Columbia encompasses all virtual currency in the exchange's operational wallets at the time of seizure — primarily $BTC and $ETH , — as well as fiat accounts in New Zealand, Australia, and the Czech Republic. The total value of the assets is currently estimated in billions of dollars due to the rise in cryptocurrency prices. The legal basis is conspiracy to commit money laundering and illegal transfer of funds (18 U.S.C. § 981(a)(1)(A)).
Victims whose assets were "frozen" on BTC-e can file claims until September 2, 2025. The government has a complete copy of the exchange's servers and transaction database to trace funds. After the seizure, the assets will be distributed among legitimate owners, while the remainder will go to the U.S. treasury. This is a signal for the crypto industry about increased regulations.
The scandal involving BTC-e, where co-founder Alexander Vinnik laundered $4 billion, underscores the risks of unregistered platforms. Similar seizures are ongoing in cases against WEX. The crypto community is awaiting fair distribution, but the process may be prolonged.
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