BTC-e cryptocurrency founder given a 5-yr prison term for laundering funds

The founder of now-defunct BTC-e cryptocurrency Alexander Vinnik has been sent to five year in prison along with a fine of 100,000 euros for laundering funds for cybercriminals, including ransomware groups, the media reported on Tuesday.

A French court sent Alexander Vinnik, 41, a Russian national, sent him to jail. The prosecutors, however, failed to prove that the BTC-e founder was directly involved in the creation and distribution of Locky, a ransomware that was active in 2016 and 2017, reports ZDNet.

The US authorities had said earlier that Vinnik operated BTC-e as a front company for a money-laundering operation, knowingly receiving funds from hacks and other forms of cybercrime.

“Mr Vinnik, the court acquitted you of the offenses relating to the cyber-attacks linked to Locky, as well as the offenses of extortion and association to criminal activities, but finds you guilty of organized money laundering,” the French judge said.

He was arrested in July 2017 while vacationing in a summer resort in northern Greece.

As soon as Vinnik’s arrest became public, Russian authorities also filed an extradition request of their own, claiming that Vinnik was also a suspect in an investigation in Russia in relation to a 2013 fraud charge.

“The BTC-e founder currently remains under arrest, and both the US and Russia have filed new extradition requests with France, still hoping to get Vinnik to face charges in their respective jurisdictions,” the report said.

The US authorities alleged that Vinnik’s BTC-e platform helped criminals launder more than $4 billion in illegal funds.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor