PANews reported on July 19 that Anatoly Legkodymov, founder of the crypto exchange Bitzlato, was sentenced to 18 months in prison for operating an unlicensed remittance business and laundering more than $700 million in illegal gambling and drug trading proceeds, according to Bloomberg. Given that Legkodymov has been detained since his arrest in January 2023, his sentence has expired and he will not have to serve any more time in the future. Last December, Legkodymov pleaded guilty, admitting that he had known for years that Bitzlato was being used as a channel for dark web transactions, including the notorious drug market Hydra Market, which was closed by authorities in 2022.
Prosecutors with Brooklyn U.S. Attorney Breon Peace's office argued that Legkodymov should be sentenced to at least four years in prison because he "created a clearing house for dirty money." But at the sentencing hearing, Judge Eric Vitaliano called the Metropolitan Detention Center, where Legkodymov was being held, "a horrible place," a factor in the decision not to allow him to serve any more time. The prison has seen two murders of inmates in the past five weeks. The judge also said Legkodymov "realized the illegal nature of what he was doing" and called him "an entrepreneur and a visionary" who "led an admirable life" before 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 deal, he also agreed to drop his claim to $23 million in cryptocurrency seized by French authorities.
