BTC-e Operator Alexander Vinnik Sentenced to 5 Years in Prison

Alleged operator of defunct crypto exchange BTC-e, Alexander Vinnik, has been sentenced to 5 years in prison for money laundering, BBC Russia reported on 7 December.

According to the publication, a French court has found the Russian national guilty of money laundering “as part of an organized criminal group” and “providing false information about the origin of the proceeds”. For his crimes, Vinnik was sentenced to a five year prison term, and will have to pay an additional fine of 100,000 Euro.

French prosecutors had also charged Vinnik with extortion, conspiracy, and the development of the ransomware known as Locky, but the court decided to drop these charges today. The United States Department of Justice (DOJ) has also claimed that Vinnik occupied a senior role at cryptocurrency exchange BTC-e, which was responsible for laundering over $4 billion. He has also been indicted by the DOJ on allegations of “computer intrusions and hacking incidents, ransomware scams, identity theft schemes”, and others.

At the request of the DOJ, Vinnik was arrested by Greek authorities back in July 2017 under allegations that he took part in the BTC-e operations. Since then, Greece has received a number of extradition requests from the U.S., Russia, and France. A decision was finally made in January 2020, when the Russian national was extradited to France.

Back in June, the New Zealand police force recovered $90 million in assets said to be connected to Vinnik and his case.