Alexander Vinnik, one of many operators behind the previous BTC-e crypto alternate, pleaded responsible to a cost of conspiring to commit cash laundering on Friday, the U.S. Division of Justice introduced.
Vinnik was an operator of BTC-e between 2011 and 2017, the DOJ stated, and the alternate processed greater than 1 million customers transacting over $9 billion in crypto throughout that point.
BTC-e was linked to the hack of now-defunct crypto alternate Mt. Gox after it was used to launder some 300,000 (BTC) from Mt. Gox. BTC-e was shut down in July 2017, on the identical time Vinnik was first arrested.
Whereas Vinnik was arrested in Greece, he confronted a prolonged extradition course of, with U.S. and Russian and French authorities making an attempt to persuade Greece to ship him to their respective nations. France did safe Vinnik’s extradition and sentenced him to 5 years in jail, earlier than Vinnik was despatched again to Greece earlier than ultimately being extradited to the U.S. He initially denied he was an operator of BTC-e, saying he was solely an worker on the alternate.
BTC-e didn’t register as a cash providers enterprise within the U.S., didn’t function any know-your-customer or anti-money laundering guidelines and didn’t gather any buyer knowledge, the DOJ stated Friday. Vinnik did use shell firms to course of fiat conversions for BTC-e, the DOJ added.
The press launch stated the alternate did obtain funds from felony actions together with ransomware assaults, hacks and different schemes, and Vinnik was straight liable for some $121 million in losses.
In an announcement, Deputy Legal professional Common Lisa Monaco stated, “At this time’s outcome exhibits how the Justice Division, working with worldwide companions, reaches throughout the globe to fight cryptocrime. This responsible plea displays the Division’s ongoing dedication to make use of all instruments to battle cash laundering, police crypto markets, and recuperate restitution for victims.”