Investors converged on the premises of Russian cryptocurrency exchange Beribit over the weekend, demanding the release of more than $4 million in frozen assets.
Witnesses observed a scene of chaos as approximately 50 individuals occupied Beribit’s office in Moscow’s Federation Tower. Staff attempted to evade the situation, but were pursued by the aggrieved investors. In a bid to quell tensions, Beribit employees distributed chocolates and pledged to return 50% of the frozen cryptocurrency.
In Moscow, depositors of the crypto exchange Beribit were given chocolates instead of money
— NEXTA (@nexta_tv) April 27, 2024
Approximately $4.3 million of investors' funds are frozen in the accounts of the crypto exchange. Customers have been storming the office for the second day, demanding their money back.… pic.twitter.com/udvlommsOI
Beribit disclosed on April 26 that it had uncovered discrepancies in its financial records, prompting an internal audit and resulting in delays in processing deposits and withdrawals.
The following day, Beribit assured users that it had initiated the reimbursement process. However, reports from the Telegram news outlet SHOT indicated that customers seeking refunds were now required to file police reports. As of April 27, only four users had received refunds, while 20 police reports had been filed.
Beribit’s troubles intensified following a police raid on March 29, which was linked to investigations into the financing of the Crocus Hall terrorist attack.
The Investigative Committee of Russia alleged that the attackers had received funding through cryptocurrency channels. This raid led to the arrest of eight individuals across several cryptocurrency exchanges.