👀 The co-founder of BTC-e has pleaded guilty to conspiring to launder $9 billion 👀
On May 3, 2024, a Russian citizen and co-founder of the cryptocurrency exchange BTC-e, Alexander Vinnik, pleaded guilty to conspiracy to launder money.
According to court documents, Vinnik was the operator of BTC-e — at the time, one of the world's largest cryptocurrency exchanges. Since its inception in 2011 until it was shut down by law enforcement in July 2017, the platform processed transactions totaling more than $9 billion. It is reported that BTC-e served over 1 million clients worldwide, including citizens of the United States.
The statement says that BTC-e was used by cybercriminals to transfer, launder, and store funds derived from illegal activities.
Additionally, the release states that funds related to the activities of corrupt government officials and drug trafficking were also transferred to the platform.
Despite operating in the U.S., BTC-e was not registered with the Financial Crimes Enforcement Network (FinCEN), did not conduct "know your customer" (KYC) checks, or anti-money laundering (AML) measures as required by federal law.
It is known that in 2017, FinCEN imposed a civil penalty of $110 million on BTC-e for intentionally violating U.S. anti-money laundering laws.
According to the Department of Justice, the final sentence for Vinnik will be issued by a federal district court judge after considering the materials provided by the IRS’s Cyber Crimes Unit, the Homeland Security Investigations (HSI) service, and other agencies. According to the release, the defendant was extradited to the U.S. with the assistance of the Greek government.
https://www.justice.gov/opa/pr/btc-e-operator-pleads-guilty-money-laundering-conspiracy