Alexander Vinnik, co-founder of cryptocurrency exchange BTC-e, pleaded guilty to money laundering conspiracy. This follows an extensive investigation, which revealed widespread illegal activities on the exchange between 2011 and 2017.
In a May 3 press release, the United States Department of Justice (DOJ) stated that under Vinnik's leadership, BTC-e processed more than $9 billion in transactions and had a user base exceeding one million globally. globally, with many users in the United States.
The DOJ emphasized that the platform was used to launder money derived from various criminal activities, including computer hacking, ransomware attacks, and drug trafficking.
BTC-e Operator Pleads Guilty to Money Laundering Conspiracy
— Criminal Division (@DOJCrimDiv) May 3, 2024
Exchange Moved Over $9B Worth of Transactions; Defendant Caused Criminal Losses in Excess of $100M
🔗: https://t.co/yMrJMgn9qC pic.twitter.com/nRyad1AH7D
According to the DOJ, an investigation found that BTC-e operated without essential legal compliance measures, including failing to register with the Financial Crimes Enforcement Network (FinCEN) and Anti-Money Laundering (AML) or Know Your Customer (KYC) protocols.
These shortcomings have made BTC-e popular among individuals looking to hide currency transactions from law enforcement. Additionally, Vinnik was found to have established multiple shell companies and financial accounts globally, allowing illegal transfers of funds through BTC-e, resulting in criminal damages totaling at least 121 million USD. million dollars.
Vinnik has been embroiled in legal battles over the past five years for his alleged Vai as the mastermind behind BTC-e. The cryptocurrency exchange is said to have profited from various illegal activities, using the platform to liquidation approximately $4 billion worth of Bitcoin.
Vinnik was arrested for money laundering in Greece in 2017 and extradited to France in 2020. In France, Vinnik was cleared of ransomware charges but was convicted of money laundering and sentenced to five years in prison.
Vinnik's lawyers unsuccessfully appealed, claiming that Vinnik was only an exchange employee and was not involved in illegal activities at BTC-e. After two years in prison in France, he was extradited to the US on August 5, 2022.
Vinnik, a Russian citizen, had also previously tried to secure a prisoner exchange deal so that he would be considered part of the prisoner trade agreement between Russia and the United States.
US authorities have brought similar criminal charges against cryptocurrency exchanges and executives. On March 28, former FTX CEO Sam Bankman-Fried was sentenced to 25 years on seven felony charges.
VIC Crypto compiled
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