An amount of cryptocurrencies worth up to 50 million USD is remaining frozen on the exchange.
This popular exchange, which was founded in 2011 in Beijing, is one of the earlier exchanges for cryptocurrencies. Its popularity grew when it offered the exchange of multiple cryptocurrencies for its customers. Vircurex supports the use of USD and Euro and offers interest-bearing for wallets with multiple digital currencies like Litecoin, Bitcoin, and Peercoin.
In order to use this option, Vircurex users have to keep some of their balance in their account at all times, and interest is paid out multiple times per day.
In 2014 the exchanged got hacked and lost its funds, now the company is being sued by former customers. A former user is blaming Vircurex for the breach of contract, change of funds, fraud and “unjust enrichment” and is filing the lawsuit in the Colorado Court District in the US.
It is explained that only a few account holders had gotten their funds back, after the exchange froze all withdrawals, claiming after the hack it lacked reserves. We have been informed that the frozen accounts combined hold 1,666 BTC, 124,763 LTC, and 78,782 TRC, a value of $50 million USD.
Still, the exchange is operating to the present day and has allowed customers to deposit funds to the platform. The platform, of course, tries to prevent lawsuits, stating it was “ incorporated in Belize” which it is not. The lawsuit mentions that the exchange is truly based in Germany, but has never been legally registered in any jurisdiction, meaning it is not recognized as a formal business by any government.
Most of the funds on Vircurex are still frozen and withdrawals are rarely possible. Some users are able to withdraw certain coins, but with an upcoming lawsuit, we would advise not to become a new member of the exchange. Existing users should try to withdraw funds from time to time, but we suggest to not be too hopeful.