Funds users of WEX.nz crypto exchange have flagged as being possibly laundered are now quarantined on Binance, CEO Changpeng Zhao confirms.
Troubled cryptocurrency exchange WEX.nz has seen its funds frozen by fellow exchange Binance after users claimed the exchange was involved in money laundering, CEO Changpeng Zhao confirmed on social media Oct. 29.
In response to an alert by an online trader known as John James on Twitter, Zhao said Binance had quarantined funds sent from wallets associated with WEX.
“[T]he identified accounts are frozen, please report to law enforcement and have a case number. We will work with LE [law enforcement],” Zhao wrote in the tweet.
“This is part of centralization we hate too, dealing with other exchange's mess (we don't even know the details). But we will do what we can,” Zhao continued in his tweet Monday.
He added that laundered funds would “soon” use decentralized exchanges to avoid freezes traditional platforms are able to instigate.
WEX soon began exhibiting suspicious traits once it began operating, with prices of Bitcoin significantly larger on its order book than global norms.
At press time, BTC/USD on WEX.nz was quoted at $8,547 – 35 percent higher than the CoinMarketCap average.