Alexander Vinnik, one of the former operators of cryptocurrency exchange BTC-e, pleaded guilty Friday to conspiracy to launder money, the U.S. Department of Justice announced.
According to the DOJ, Winnick was an operator of BTC-e from 2011 to 2017, during which time the exchange facilitated more than $9 billion in #cryptocurrency transactions for more than one million users.
BTC-e was linked to the hacking of the now defunct Mount Gox #cryptocurrency exchange after it was used to launder around 300,000 (BTC) from Mount Gox BTC-e was shut down in July 2017, the same month that Winnik was first arrested.
When Vinnik was arrested in Greece, he faced a lengthy extradition process, with authorities in the United States, Russia, and France convincing Greece to send him back to their countries. France took Vinnik into custody and sentenced him to five years in prison. Vinnik was then sent back to Greece and extradited to the United States. He initially denied being the operator of BTC-e, saying he was merely an employee of the exchange.
BTC-e was not registered as a money services company in the U. S. , failed to comply with "know your customer" and anti-money laundering rules, and did not collect customer data, the U. S. Justice Department said Friday. Winnick used a shell company to convert fiat currency for BTC-e, the DOJ added.
The exchange received funds from criminal activity, including extortion attacks, hacking and other schemes, and Vinnik is directly responsible for about $121 million in losses, the press release said.
Deputy Attorney General Lisa Monaco said in a statement, "Today's results demonstrate how the Department of Justice, working with our international partners, is fighting cryptocurrency crime around the world. This guilty plea reflects the DOJ's continued commitment to use every tool at its disposal to combat money laundering, disrupt the cryptocurrency market, and provide compensation to victims. "
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