Alexander Vinnik, one of the former operators of cryptocurrency exchange BTC-e, pleaded guilty to money laundering conspiracy charges on Friday, the US Department of Justice announced.
According to the Justice Department, Vinnik operated BTC-e from 2011 to 2017, during which time the exchange processed more than 1 million users who traded more than $9 billion in cryptocurrencies.
BTC-e has been linked to the hack of now-defunct cryptocurrency exchange Mt.Gox after it was used to launder approximately 300,000 (BTC) from Mt.Gox. BTC-e was shut down in July 2017, at the same time that Vinik was first arrested.
Mr. Vinnik was arrested in Greece and faced a lengthy extradition process as U.S., Russian and French authorities tried to persuade Greece to send him to their respective countries. After France secured Mr. Vinik's extradition and sentenced him to five years in prison, he was extradited to Greece and then ultimately extradited to the United States. He initially denied that he was the operator of BTC-e, saying he was just an employee of the exchange.
BTC-e is not registered as a money services operator in the United States, does not operate customer tracking or anti-money laundering rules, and does not collect customer data, the Department of Justice announced Friday. The Justice Department added that Vinik used a shell company to process the fiat currency conversion of BTC-e.
According to the press release, the exchange did receive funds from criminal activity, including ransomware attacks, hacking, and other schemes, and Vinik was directly responsible for approximately $121 million in losses. That's what it means.
“Today's results demonstrate how the Department of Justice is reaching out around the world to work with international partners to combat crypto crime,” Deputy Attorney General Lisa Monaco said in a statement. “This guilty plea reflects the department's continued commitment to using all tools available to combat money laundering.” Police the virtual currency market and collect compensation from victims. ”