New Zealand Authorities Seize $90M Connected To Now Defunct BTC-e Exchange
- The New Zealand Asset Recovery Unit reportedly coordinated with the U.S. IRS in order to address the lost funds.
- Vinnik was extradited to France earlier this year, and has been charged with counts of extortion and aggravated money laundering.
Alexander Vinnik, former owner of the now defunct BTC-e crypto exchange , escorted to the Supreme Court to examine the request of U.S.A for extradition of the accused in U.S.A, Athens, Greece on Nov. 15, 2017. Alexandros Michailidis/Shutterstock
The police in New Zealand has seized NZD 140 million (around $90 million) in assets linked to Alexander Vinnik, the controller of now defunct BTC-e crypto exchange, the New Zealand Herald reported on 22 June.
According to the publication, the recovered funds were controlled by a New Zealand-registered company, which was connected to the investigation of Vinnik. The country’s Asset Recovery Unit, which has been coordinating with the U.S. Internal Revenue Service (IRS), froze the funds due to an investigation into the activities of the BTC-e exchange and its operators.
Police Commissioner Andrew Coster said in a statement:
“New Zealand Police has worked closely with the Internal Revenue Service of the United States to address this very serious offending. These funds are likely to reflect the profit gained from the victimisation of thousands, if not hundreds of thousands, of people globally as a result of cyber-crime and organised crime.”
Vinnik, also known as “Mr. Bitcoin”, was allegedly the one in control of BTC-e, a cryptocurrency exchange which was accused of laundering around 300,000 Bitcoins (roughly worth $4 billion) for criminal enterprises. He was arrested in July 2017, while on a holiday with his family in Greece, on extradition orders from the U.S., and earlier this year was extradited to France.
For his alleged involvement in the laundering scheme, officials in France have already charged Vinnik with counts of extortion, aggravated money laundering, conspiracy and harming automatic data-processing systems. It is likely that Vinnik will be extradited to the United States after the conclusion of his trial in France. The U.S. State Department reportedly wishes to question Vinnik regarding the 2014 Mt. Gox hack, and the subsequent theft of Bitcoins allegedly traced to his personal crypto wallet.
- The New York Jurors took 4 fours of deliberating before pronouncing the former FTX CEO guilty of all seven charges of fraud and conspiracy to commit fraud.
- Bankman-Fried will now have to appear in court on 28 March, 2024, where he will face a potential maximum sentence of 115 years in prison.
Former CEO of FTX Sam Bankman-Fried leaves the Federal Court in New York after pleading not guilty, 3 January, 2022.
lev radin/Shutterstock
- The U.S. Department of Justice has expressed its concerns over Sam Bankman-Fried’s seven expert witnesses, and requested they be barred from testifying on the case.
- The DoJ claimed most of the proposed experts lacked the necessary foundation for their opinions, making them unqualified to be an expert witness.
- Do Kwon was charged with conspiracy to defraud, commodities fraud, securities fraud, wire fraud, and conspiracy to engage in market manipulation.
- A spokesperson for the Manhattan U.S. attorney’s office, which brought the charges against Do Kwon, said the Department of Justice (DoJ) will seek his extradition.