Alexander Vinnik’s Extradition Due to Crypto Money Laundering?

Vinnik’s Arrival in The USA

Alexander Vinnik, a Russian national, is said to have arrived in the US after a protracted extradition dispute involving the US, Russia, and France on allegations of cryptocurrency money laundering. Following Brittney Griner’s illegal detention and nine-year sentence in Russia in what has been called a political hostage scenario, the US apparently scored a tactical victory.

Vinnik is most well-known for purportedly running the cryptocurrency exchange BTC-e, which operated from 2011 until 2017. However, in its early days, it was also utilized by CoinDesk to determine a real bitcoin price across exchanges. Lawyers claim that it was known for its lack to gather user identifying information, which made it popular among criminals. It is said to have accounted for 3% of total bitcoin transactions in 2015. In 2017, it was estimated that BTC-e transactions accounted for 95% of all ransomware payments ever recorded.

Vinnik spent five years in jail after being found guilty of cryptocurrency money laundering in connection with the Locky malware hacking group that preyed on German and French investors between 2016 and 2018. While on vacation with his family, he was detained in Greece and returned to France in 2020 to complete his sentence. Vinnik was wanted by the US, France, and Russia all at once. Due to the low level of seriousness of the allegations, the Russian national stated a wish to be tried in his native nation. But in the end, France triumphed.

Vinnik’s Private Flight to San Fransisco

Vinnik completed his time there, and now the US and Russia are vying for his extradition to stand trial on related criminal accusations. According to Frédéric Bélot, the Russian attorney, the US dropped its petition in order to secure the operator of the cryptocurrency exchange, taking advantage of a legal technicality that would reset extradition rights in the US favor.

On July 15, the US withdrew its demand for Vinnik’s extradition from France.

At the time, Bélot predicted that this action would enable the US to detain Vinnik for an extended length of time before finally extraditing him to Greece. The lawyer claimed that from there, a request for extradition from Greece to the US might be revived. According to various sources, Vinnik allegedly flew privately on Thursday from Moscow to Boston and then on to San Francisco. A court appearance by the Russian national is anticipated in the US Northern District of California.

17 charges of money laundering, one count of conspiring to commit money laundering, one count of running an unregistered money service business, and two counts of carrying out illegal financial transactions are all counts. During its six years of business, BTC-e reportedly received more than $4 billion in bitcoin, according to the Justice Department. According to sources, the US Treasury announced a $110 million civil money penalty and a $12 million fine against Vinnik in 2017.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing