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The alleged operator of the illicit cryptocurrency change BTC-e was extradited yesterday from Greece to the US to face fees within the Northern District of California.
“After greater than 5 years of litigation, Russian nationwide Alexander Vinnik was extradited to the US yesterday to be held accountable for working BTC-e, a felony cryptocurrency change, which laundered greater than $4 billion of felony proceeds,” mentioned Assistant Lawyer Basic Kenneth A. Well mannered, Jr. of the Justice Division’s Felony Division. “This extradition demonstrates the Division’s dedication to investigating and dismantling illicit cyber exercise and wouldn’t have been potential with out the relentless work of the Justice Division’s Workplace of Worldwide Affairs. The Justice Division thanks the Authorities of Greece, notably the Ministry of Justice, for all their efforts in securing the defendant’s switch to the US.”
Alexander Vinnik, 42, a Russian citizen, was charged in a 21-count superseding indictment in January 2017. Vinnik was taken into custody in Greece in July 2017 on the request of the US. He made his preliminary look earlier right this moment in federal courtroom in San Francisco earlier than U.S. Justice of the Peace Decide Sallie Kim.
Based on the indictment, Vinnik and his co-conspirators allegedly owned, operated, and administrated BTC-e, a big cybercrime and on-line cash laundering entity that allowed its customers to commerce in bitcoin with excessive ranges of anonymity and developed a buyer base closely reliant on felony exercise.
The indictment alleges BTC-e facilitated transactions for cybercriminals worldwide and acquired felony proceeds from quite a few laptop intrusions and hacking incidents, ransomware scams, identification theft schemes, corrupt public officers, and narcotics distribution rings, and was used to facilitate crimes starting from laptop hacking, to fraud, identification theft, tax refund fraud schemes, public corruption, and drug trafficking. The investigation has revealed that BTC-e acquired greater than $4 billion price of bitcoin over the course of its operation.
Regardless of doing substantial enterprise in the US, the indictment alleges that BTC-e was not registered as a cash companies enterprise with the U.S. Division of Treasury, had no anti-money laundering course of, no system for applicable “know your buyer” or “KYC” verification, and no anti-money laundering program as required by federal legislation.
In 2017, FinCEN assessed a civil cash penalty towards BTC-e for willfully violating U.S. anti-money laundering (AML) legal guidelines and towards Vinnik for his function within the violations. A civil matter to implement civil financial penalties, within the quantity of $88,596,314 as to BTC-e and $12 million as to Vinnik, is pending within the Northern District of California.
The indictment fees BTC-e and Vinnik with one rely of operation of an unlicensed cash service enterprise, and one rely of conspiracy to commit cash laundering. As well as, the indictment fees Vinnik with 17 counts of cash laundering and two counts of partaking in illegal financial transactions.
The FBI, IRS Felony Investigation (Oakland Subject Workplace and Cyber Crime Unit, Washington, D.C.), Homeland Safety Investigations, and U.S. Secret Service Felony Investigative Division are investigating the case.
Trial Lawyer C. Alden Pelker of the Justice Division’s Pc Crime and Mental Property Part, and Assistant U.S. Lawyer Claudia Quiroz of the U.S. Lawyer’s Workplace for the Northern District of California are prosecuting the case.
The Justice Division’s Nationwide Cryptocurrency Enforcement Crew supplied substantial help. The extradition request was dealt with by the Justice Division’s Workplace of Worldwide Affairs.
The Justice Division thanks the Greek Ministry of Justice for its cooperation in securing the defendant’s switch to the US.
An indictment is merely an allegation. All defendants are presumed harmless till confirmed responsible past an affordable doubt in a courtroom of legislation.
