On July 26, 2017, a grand jury in California indicted Alexander Vinnik, a Russian national, for money laundering, operating an unlicensed money service business (BTC-e), and related crimes. One day prior to the indictment, Vinnik was arrested in Greece. The indictment alleges that Vinnik stole identities, facilitated drug trafficking, and helped launder criminal proceeds. Vinnik is also accused of receiving funds from the infamous hack of Mt. Gox and laundering them through online exchanges, including his own business. BTC-e conducted substantial business in the U.S. but was not registered as a money services business with the U.S. Department of Treasury, had no anti-money laundering process, no “know your customer” verification, and no anti-money laundering program. Vinnik faces charges of operation of an unlicensed money service business, conspiracy to commit money laundering, money laundering, and engaging in unlawful monetary transactions. The crimes carry maximum penalties of 5, 20, 20, and 10 years in prison, respectively. United States v. BTC-E, et al., Cr. 16-00227 SI (N.D. Cal.).
Home > Money Laundering > Russian National and Bitcoin Exchange Charged in 21-Count Indictment for Operating Alleged International Money Laundering Scheme and Allegedly Laundering Funds from Hack of Mt. Gox