Defunct Bitcoin Exchange Wex (Formerly BTC-E) Chief Arrested in Italy: BBC

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BBC Russia has it that former Wex Exchange (formerly BTC-E) operator Dmitry Vasilyev has been detained in Italy.Some may recall the curious price discrepancies on Wex not so long ago, which raised red flags across the industry.The belief was that the exchange wanted to attract deposits to capture money for nothing. Once the deposits were made, it was believed, withdrawals would be held up – this is the reason for the higher price, as people expect to be able to cash out a higher rate.In general, it makes no sense for one exchange to have a remarkably higher price on a given asset than any other. The arbitrage opportunity is usually too apparent for traders.Vasilyev is allegedly tied to BTC-e, one of the oldest exchanges and biggest scandals in the history of Bitcoin. BTC-e operators were alleged to have taken part in defrauding Mt. Gox, serious accusations which have yet…

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