- Alexander Vinnik, co-founder of crypto exchange BTC-e, has pleaded guilty to charges of conspiracy to commit money laundering.
- The US Department of Justice (DOJ) has released a public statement detailing Vinnik’s role in facilitating $9 billion worth of illicit transactions on BTC-e between 2011 and 2017.
- The DOJ claims that BTC-e was a major money-transmitting platform for cybercriminals worldwide, with Vinnik playing a key role in its operations.
Alexander Vinnik, co-founder of BTC-e, pleads guilty to money laundering charges, highlighting the ongoing fight against crypto crime by the US Department of Justice.
Vinnik’s Role In BTC-e’s “Criminal” Operations – US DOJ
The DOJ has stated that before its closure in 2017, BTC-e was a major platform for money transmission for cybercriminals worldwide. The platform processed funds from various bad actors, including hackers, scammers, corrupt civil servants, and drug dealers. As an operator of BTC-e, Vinnik was an ally of these criminals, resulting in a loss of $121 million. The DOJ further highlighted that BTC-e lacked any anti-money laundering (AML) protocols and was not registered as a money transmitter platform with the US Financial Crimes Enforcement Network (FinCEN), despite having a significant portion of US citizens in its customer base.
DOJ’s Fight Against Crypto Crime
Deputy Attorney General Lisa Monaco commended the DOJ’s efforts in fighting against crimes involving the use of digital assets. She stated, “Today’s result shows how the Justice Department, working with international partners, reaches across the globe to combat crypto crime. This guilty plea reflects the Department’s ongoing commitment to use all tools to fight money laundering, police crypto markets, and recover restitution for victims.”
What Next For Vinnik?
Vinnik was first apprehended by Greek authorities in 2017 on allegations of money laundering based on a US arrest warrant. In 2020, he was extradited to France where he was acquitted of charges of crypto-ransomware but found guilty of money laundering, leading to a five-year jail sentence. After serving two years in French prison, Vinnik was transferred to the United States. He attempted to undergo a prisoner trade swap involving the US and the Russian Federation. However, following his admission of conspiracy to commit money laundering through the BTC-e exchange, Vinnik will now await judgment from a US federal district court judge.
Conclusion
This case highlights the ongoing global efforts to combat crypto crime, particularly money laundering. It serves as a reminder for crypto exchanges and their users to adhere to anti-money laundering protocols and other regulatory requirements. The outcome of Vinnik’s case could set a precedent for future cases involving crypto crime.
