Anatoly Legkodymov, founder of the Bitzlato cryptocurrency exchange, has completed an 18-month prison sentence for operating an unlicensed money transmission business that funneled more than $700 million in illegal gambling and drug-dealing proceeds, Bloomberg reported.
Legkodymov has been in federal custody since his arrest in January 2023. In sentencing, a U.S. District Court judge cited poor conditions at the detention center, where two murders have occurred in the past five weeks, as a factor in the verdict.
Legkodymov admitted the illegal nature of his actions and that he processed hundreds of millions of dollars in illicit funds for criminals. Nevertheless, the judge called him an "admirable entrepreneur and visionary" before his arrest.
As part of the plea agreement, Legkodymov agreed to forfeit $23 million in cryptocurrency seized by French authorities. The case is part of the U.S. Department of Justice’s broader effort to combat cryptocurrency crime and recover the proceeds of crime.
