Former BTC-e Operator Pleads Guilty to Money Laundering Charges
The U.S. Department of Justice announced that Alexander Vinnik, a former operator of the BTC-e crypto exchange, pleaded guilty to conspiring to commit money laundering.
Vinnik was involved with BTC-e from 2011 to 2017, during which the exchange processed over $9 billion in crypto transactions involving more than 1 million users.
BTC-e was implicated in the Mt. Gox hack, which saw approximately 300,000 BTC laundered through the exchange. Following Vinnik’s arrest in Greece, multiple countries, including the U.S., Russia, and France, sought his extradition.
France succeeded in securing his extradition and sentenced him to five years in prison. Vinnik denied being a BTC-e operator initially, claiming he was merely an employee.
BTC-e operated without registering as a money services business in the U.S., neglecting to implement know-your-customer and anti-money laundering protocols, and failing to collect customer data. Vinnik utilized shell companies for fiat conversions for BTC-e.
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According to the DOJ, BTC-e received funds from criminal activities, including ransomware attacks and hacks, with Vinnik directly responsible for approximately $121 million in losses.
Deputy Attorney General Lisa Monaco emphasized the Department’s commitment to combatting crypto-related crime globally and recovering restitution for victims.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
