On Feb 12, Reuters reported that United States officials confirmed the extradition of suspected cybercrime leader Alexander Vinnik to Russia as part of a prisoner swap. Vinnik, who operated BTC-e, once a major cryptocurrency exchange, was apprehended in a Greek seaside village based on Washington's allegations of money laundering approximately $4 billion through the platform.
US authorities had also tied Vinnik to the Mt. Gox collapse in 2014, linking him to funds obtained from the hack that were funneled through various exchanges, including BTC-e. Vinnik was extradited first to France and then to the US, where he pleaded guilty in May 2024 to money laundering conspiracy, facing a possible 20-year sentence. The postponement of his sentencing from January to June by a US federal judge was recorded in court documents without elaboration on the cause.
According to the US Attorney's Office for the Northern District of California, BTC-e processed over $9 billion in transactions from 2011 to its closure in 2017 following Vinnik's arrest. The exchange facilitated illicit activities globally, including laundering criminal proceeds from hacking, ransomware, identity theft, and drug rings. Vinnik was portrayed as running BTC-e to further these unlawful actions.
In a recent court proceeding, US District Judge Susan Illston convened a status conference on the Vinnik case without disclosing specific details. Journalist Andrei Zakharov, author of a book on Vinnik, highlighted the rumored control of 80,000 bitcoins stolen from Mt. Gox in 2011, suggesting considerable financial concerns emphasizing the importance of Vinnik's return to Moscow.