Important Chatex Announcement

CHTX Token sale is canceled.

Chatex is listed on the U.S. Sanctions List under Executive Order 13694 on suspicion of supporting Suex company.

Unfortunately the above forces us to cancel the token sale. We are deeply sorry for this closure, but the events that led to this are neither associated with our team nor in our control.

For now, we put it on hold until clarification of all of the lawsuit's details. All customers’ funds are safe and secure, but restricted to be moved during the legal case proceeding. We are working to ensure that customers get access to their funds as soon as possible.

Regardless, we remain incredibly grateful for the support of both our community and partners, and hope you recognize that while the sale cancelation is difficult, we feel it as a necessary one.

About the situation with user funds

Our legal entities, bank accounts and crypto wallets were sanctioned by the USA.

What does “to get under the sanctions" mean?

This means an outright ban on any transactions, including the conclusion of contracts and agreements, payment or receipt of payment from the sanctioning company or entity.

This means that Chatex cannot pay for any third party services that support its operations. There are plenty of significant services of this kind: for instance, a custodian service, servers, services for verifying KYC / AML users, gateways for sending SMS, and so on.

Therefore, the work of the service was technically impossible and was suspended.

What about money?

User funds are safe. This is the main thing.

When will you be able to get access to them?

We are not able to give you a concrete date and time. Even an approximate one. Too little time has passed to clarify all legal issues. Most likely, full access to funds will become possible after the sanctions are lifted.

Why can't we get a refund right now?

All funds are now divided into three categories:

  1. Coins that are blocked by the custodian service and there is simply no access to them.

  2. Coins whose addresses are clearly included in the sanctions list and the movement of these funds will be a direct violation of the sanctions regime with the most serious consequences.

  3. Coins whose addresses are not included in the sanctions list, but are included in the Chatex cluster in AML screening systems. The movement of these funds will lead to their subsequent blocking on any other exchange. In addition, AML screening does not work and we cannot provide a compliant withdrawal procedure.

We work as closely and productively as possible with lawyers to find a solution for a quick and legitimate return procedure.

Chatex has always been known for its great care for its users. This is our top priority even in the current situation.

Dear community members! We will keep you updated on the situation presumably every Tuesday. There’s nothing new we can tell on a daily basis due to sluggishly conducted procedures.

  1. Our legal team has been working on our case with OFAC from day one. Please, keep in mind that it’s an official legal communication via email. That’s why it takes so long to provide you with new information.

  2. Some of you have already found a license application form on OFAC’s website, which allows you to withdraw your funds from under sanctions. Now our lawyers are doing their best to get this license as soon as possible. There are two types of licenses: common and individual. Common license will allow us, as a company, to transfer all funds to their owners. Individual licenses provide an opportunity to withdraw funds by each user through the website's form. We are trying our best to get a “common” license, but it looks like we'll have to get plenty of individual licenses. It’s much more difficult and lasting. But, more importantly, back then this procedure was applicable only to fiat structures. For instance, you have to fill in the recipient bank and the sending bank. Now we should adapt this procedure to our situation in order to be available to work with crypto.

  3. Once again we are paying your attention to funds’ safety. There are plenty of high-class technical specialists in our community, who have been working with crypto for a very long time. They are fully aware how to identify the address of our wallets, using transaction information. If any amount of money had been transferred, it would have been detected immediately.

  4. About addresses. Ethereum (Eth and ERC20) and Tron (TRX and TRC20)

    Our users’ private wallets inside our bot’s system are used as user’s ID. Cryptocurrencies, on the other hand, are holded in common Chatex’s wallet. In some kind of storage, like in any traditional bank. When a user conducts a transaction to Chatex, we transfer those funds to our storage and note that this particular user now owns a concrete amount of funds in our storage. Then our users are able to proceed transactions inside our bot within the sun, which they own.

    There’s the same algorithm where transactions and deals inside Chatex are conducted. In fact, we don’t actually transfer funds inside the blockchain, we just note that the sender or seller now has another amount of sum, which he is able to manage inside the company.

    When a user wants to send funds to a wallet outside Chatex, we transfer a particular amount from Chatex’s common wallet.

    That’s why you see a zero balance in the bot. All money is in our common wallet. There were no transactions from it after the bot's work had been stopped.

    Nevertheless, you shouldn’t just believe us – you can hide nothing in blockchain. 😉

  5. About BTC addresses. For BTC transactions we use Bitgo’s Bitcoin HD Wallet. This means that all the users’ addresses are in fact subsidiaries of this particular wallet. In other words, we used a common place for all users’ BTC. And inside our platform users’ accounts were accumulated in accordance with their amount of funds. All transactions inside our platform were conducted outside the blockchain, inside our own database. All withdrawals were an arbitrary combination UTXO (unspent transaction output) from all addresses Bitgo’s HD Wallet. UTXO was managed by Bitgo’s itself. For example, if Chatex’s user wanted to transfer 1 BTC, Bitgo could have transferred 0.1 BTC from 10 addresses and combined all these transfers into one transaction. Before Chatex’s system work was stopped there could have been either zero amount of funds or any other sum, in the concrete user's address. It was managed by Bitgo due to technical HD wallet’s issues. Now all unspent transactions output are freezed at the moment of sanctions’ appearance.

  6. Friends, we are not scam! If we were, we would have closed our community. We are doing our best to bring back your money as soon as possible.

  7. We got great support from our community members! We want to thank you for this greatly. Unfortunately, no petitions, no public response will not help to make this process easy. There are plenty of legal issues, which we have to solve. That’s why we don’t make any public comments or official statements. We don’t want to compromise this process. Anyway, we are going to keep you updated weekly and answer the most hot questions inside the community.

Thank you for understanding and support!
Chatex Team.