Outside Source
Russian national Alexander Vinnik, previously convicted for running a multi-billion-dollar money-laundering operation through his BTC-e crypto exchange, has been released in a prisoner exchange between Russia and the United States.
In return, Moscow freed American schoolteacher Marc Fogel, who had been detained on drug charges.
Vinnik’s Role in BTC-e and Legal Troubles
Vinnik operated the BTC-e platform from 2011 to 2017 when he was arrested by police in Greece at the request of American law enforcement agencies.
According to the U.S. Justice Department, the exchange processed transactions worth more than $9 billion across six years, much of which was allegedly tied to crimes such as ransomware attacks, drug trafficking, and identity theft.
Authorities claim that BTC-e’s lack of anti-money laundering (AML) and Know-Your-Customer (KYC) policies made it attractive to cybercriminals.
Vinnik was extradited to France in 2020 and sentenced to five years for money laundering. He was later sent back to Greece before finally being handed over to the Americans in 2022.
In May 2024, the Russian pleaded guilty to conspiracy to commit money laundering and faced up to 20 years in prison. During his trial, prosecutors accused Vinnik of facilitating over $120 million in losses and described BTC-e as a “significant cybercrime and online money laundering entity.”
Millions of dollars worth of assets belonging to the platform were seized, including $90 million that authorities bagged in New Zealand. Additionally, the U.S. Treasury Department imposed a $120 million fine on the exchange, with Vinnik personally facing a $12 million penalty.
A Long-Running Extradition Battle
Before his transfer to the U.S., the 45-year-old had been at the center of an international legal battle involving France, Russia, and the United States.
While Russia sought his extradition on lesser fraud charges amounting to just $11,000, France and the U.S. pursued him for broader financial crimes. In 2023, his lawyers tried to include him in a U.S.-Russia prisoner swap involving journalist Evan Gershkovich, but it was unsuccessful.
His exchange for Fogel, an American teacher detained in Russia, marks a rare moment of cooperation between the two countries, especially coming against the backdrop of the ongoing Ukraine war. Vinnik will have to forfeit tens of millions of dollars in assets as part of the deal.
This article first appeared at CryptoPotato
