By Daryna Antoniuk
Operating BTC-e from 2011 until its closure in 2017, Vinnik oversaw a platform that processed over $9 billion in transactions and attracted more than a million users globally, including many in the United States.
Court documents reveal that Vinnik was implicated in a loss of at least $121 million due to illicit activities associated with BTC-e. He allegedly established multiple shell companies and financial accounts worldwide, enabling the exchange to function without being registered as a money services business.
According to the DOJ, “BTC-e was a primary method for cybercriminals to transfer, launder, and store proceeds from illegal activities.”
Vinnik was initially arrested in Greece in 2017 at the request of U.S. authorities and was later extradited to France in 2020 on charges of hacking and extortion. After being returned to Greece, he was finally extradited to the U.S. Meanwhile, Russia sought to have him extradited for separate fraud charges.
Initially, Vinnik denied being the operator of BTC-e, claiming he was merely an employee. However, following a plea bargain, his attorney, Arkady Bukh, stated that Vinnik is expected to receive a prison term of less than 10 years, significantly shorter than a potential life sentence that could have resulted from the original indictment.
In February, U.S. authorities charged another alleged BTC-e operator, Belarusian and Cypriot national Aliaksandr Klimenka, who faces similar charges and could face up to 25 years in prison if convicted.
The DOJ highlighted that BTC-e collected virtually no customer data, making it an attractive option for individuals looking to conceal criminal proceeds from law enforcement. The platform also lacked any know-your-customer or anti-money laundering protocols and was linked to the infamous hack of the Mt. Gox exchange, which was the largest cryptocurrency exchange from 2010 to 2013.