Close Menu
    Facebook LinkedIn YouTube Instagram X (Twitter)
    Blue Tech Wave Media
    Facebook LinkedIn YouTube Instagram X (Twitter)
    • Home
    • Leadership Alliance
    • Exclusives
    • Internet Governance
      • Regulation
      • Governance Bodies
      • Emerging Tech
    • IT Infrastructure
      • Networking
      • Cloud
      • Data Centres
    • Company Stories
      • Profiles
      • Startups
      • Tech Titans
      • Partner Content
    • Others
      • Fintech
        • Blockchain
        • Payments
        • Regulation
      • Tech Trends
        • AI
        • AR/VR
        • IoT
      • Video / Podcast
    Blue Tech Wave Media
    Home » BTC-e founder Vinnik admits to $121M money laundering charges
    Alexander Vinnik commit crimes
    Alexander Vinnik commit crimes
    Blockchain

    BTC-e founder Vinnik admits to $121M money laundering charges

    By Sylvia ShenMay 6, 2024No Comments3 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email
    • Alexander Vinnik, co-founder of BTC-e, has confessed to money laundering conspiracy charges after a thorough investigation exposed illegal activities from 2011 to 2017.
    • The US Department of Justice revealed that BTC-e, under Vinnik’s leadership, processed over $9 billion in transactions and amassed a user base exceeding one million globally, facilitating money laundering from various criminal enterprises.
    • Operating without legal compliance measures, including registration with FinCEN and neglecting AML or KYC protocols, BTC-e ultimately resulted in criminal losses and legal repercussions for Vinnik.

    Alexander Vinnik, co-founder of the cryptocurrency exchange BTC-e, has admitted to charges of money laundering conspiracy following a comprehensive investigation that uncovered a series of illegal activities from 2011 to 2017.

    Shocking lack of legal compliance

    The US Department of Justice (DOJ) claimed in a news statement that BTC-e processed over $9 billion and attracted over a million users worldwide while Vinnik was in charge of it. Money from a variety of illegal operations, including ransomware attacks, drug trafficking, and computer hacking, was laundered through the network.

    The investigation has exposed that BTC-e operated without fundamental legal compliance measures.

    Shockingly, the exchange failed to register with the Financial Crimes Enforcement Network (FinCEN) and neglected Anti-Money Laundering (AML) or Know Your Customer (KYC) protocols.

    Due to these flaws, BTC-e became popular among individuals seeking to conceal money transactions.

    Furthermore, it was found that Vinnik had set up many shell corporations and bank accounts across the world, facilitating the unauthorised movement of money via BTC-e and causing at least $121 million in criminal damages.

    Also read: What’s the best cryptocurrency to invest in?

    Also read: FTX scandal: How SBF’s crypto empire finally fell apart

    DOJ prepares sentencing for Vinnik

    Vinnik was detained in Greece in 2017 on suspicion of money laundering; in 2020, he was extradited to France. He was convicted guilty of money laundering charges while in France, although he was cleared of ransomware allegations, carrying a five-year jail term.

    Vinnik’s legal team attempted to appeal, arguing that he is just an exchange employee and has no relation to any illegal activity at BTC-e, but their efforts proved unsuccessful.

    Vinnik served two years in a French jail before being extradited to the United States on August 5, 2022.

    The Department of Justice announced that Vinnik’s sentencing will be determined by a federal district court judge, who will consider a range of statutory elements alongside the U.S. Sentencing Guidelines.

    U.S. authorities have charged crypto exchanges and executives similarly, with former FTX CEO Sam Bankman-Fried being sentenced to 25 years for seven felony charges on March 28.

    Alexander Vinnik BTC-e
    Sylvia Shen

    Sylvia Shen is an editorial assistant at Blue Tech Wave specialising in Fintech and Blockchain. She graduated from the University of California, Davis. Send tips to s.shen@btw.media.

    Related Posts

    La Sentinelle: Leading Mauritius media and printing group

    July 17, 2025

    Central Bank of Congo

    July 16, 2025

    Interview with Ram Kumar, Cofounder of OpenLedger: Harnessing the $25M funding to shape the future of decentralized AI in China

    July 14, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    CATEGORIES
    Archives
    • July 2025
    • June 2025
    • May 2025
    • April 2025
    • March 2025
    • February 2025
    • January 2025
    • December 2024
    • November 2024
    • October 2024
    • September 2024
    • August 2024
    • July 2024
    • June 2024
    • May 2024
    • April 2024
    • March 2024
    • February 2024
    • January 2024
    • December 2023
    • November 2023
    • October 2023
    • September 2023
    • August 2023
    • July 2023

    Blue Tech Wave (BTW.Media) is a future-facing tech media brand delivering sharp insights, trendspotting, and bold storytelling across digital, social, and video. We translate complexity into clarity—so you’re always ahead of the curve.

    BTW
    • About BTW
    • Contact Us
    • Join Our Team
    TERMS
    • Privacy Policy
    • Cookie Policy
    • Terms of Use
    Facebook X (Twitter) Instagram YouTube LinkedIn

    Type above and press Enter to search. Press Esc to cancel.