BTC-e Co-founder Pleads Guilty to $9 Billion Money Laundering Scheme

Alexander Vinnik, the co-founder of the cryptocurrency exchange BTC-e, pleaded guilty to money laundering conspiracy charges. The U.S. Department of Justice (DOJ) announced the admission on May 3. Vinnik admitted to helping operate BTC-e, a platform implicated in facilitating $9 billion in illegal transactions from 2011 to 2017.

BTC-e was a key financial hub for global cybercriminals before its closure in 2017. It processed illicit funds from hackers, fraudsters, corrupt officials, and drug traffickers. The DOJ stated that Vinnik’Vinnik'sn these operations led to a loss of $121 million.

The exchange operated without necessary anti-money laundering (AML) measures and was not registered as a money transmitter with the U.S. Financial Crimes Enforcement Network (FinCEN) despite serving many U.S. customers. U.S. prosecutors also accused Vinnik of creating shell companies that lacked proper verification policies, aiding the exchange activities.

Deputy Attorney General Lisa Monaco highlighted the guilty plea as evidence of the DOJ’s rDOJ'se to combat crimes involving digital currencies. She stated that this case shows the DOJ's commitment to using every tool available to address crypto market crimes and support victim restitution.

Looking forward, after his 2017 arrest in Greece and subsequent legal proceedings in France, Vinnik was extradited to the U.S. He attempted a prisoner exchange between the U.S. and Russia but was unsuccessful. Following his guilty plea, he now awaits sentencing under U.S. law, reflecting significant progress in the fight against cryptocurrency-related crimes.