Vinnik's BTC-e linked to the Mt. Gox hack pleaded guilty

During the Mt. Gox hack, which culminated in 2014, approximately 850,000 bitcoins were lost.

On May 3, 2024, Alexander Vinnik pleaded guilty to conspiracy to commit money laundering in connection with his role in managing the cryptocurrency exchange BTC-e from 2011 to 2017. During its operation, BTC-e facilitated over $9 billion in transactions and served more than one million users globally.

The platform was involved in laundering the proceeds from various criminal activities, including computer intrusions, hacking incidents, ransomware attacks, identity theft schemes, operations by corrupt public officials, and narcotics distribution networks. Vinnik, who deliberately designed BTC-e to support these illegal activities, was implicated in causing financial losses amounting to at least $121 million.

Vinnik now faces the potential of a 20-year prison sentence at his forthcoming sentencing in the U.S. Previously, in 2020, he was convicted on money laundering charges in France and received a five-year prison term.