According to Bloomberg, the Russian founder of the Bitzlato cryptocurrency exchange, Anatoly Legkodymov, was sentenced to the 18 months he had already served in US custody for operating an unlicensed money-transmitting business. The business was involved in masking proceeds from illegal gambling and drug deals valued at over $700 million. Legkodymov had been in federal custody since his arrest in January 2023 and was sentenced to time served by a US District Judge on Thursday.

During the sentencing hearing, the judge described the Metropolitan Detention Center, where Legkodymov was held, as “a terrible place,” which influenced the decision against extending his time behind bars. The judge acknowledged that Legkodymov was aware of the illicit nature of his activities and had processed hundreds of millions of dollars in illegal funds for criminals. However, the judge also referred to him as “an entrepreneur and a visionary” who had led an admirable life prior to his arrest.

Legkodymov, who had lived in Russia and Shenzhen, had moved to Pennsylvania at the time of his arrest. As part of his plea agreement, he waived a claim to $23 million in cryptocurrency seized by French authorities. This case is part of a broader effort by the US Justice Department to combat the criminal use of cryptocurrency and recover the proceeds of such crimes through the National Cryptocurrency Enforcement Team.