Crypto Exchange Founder Pleaded Guilty To $700 M Unlicensed Money
There is a crypto exchange founder who has pleaded guilty to $700 million in unlicensed money. Check out the latest reports about this below. Crypto exchange founder pleads guilty to $700m unlicensed money The founder of...
Archive context
Older archive item. Useful for background and entity history, but not a fresh market-moving signal.
There is a crypto exchange founder who has pleaded guilty to $700 million in unlicensed money. Check out the latest reports about this below.
Crypto exchange founder pleads guilty to $700m unlicensed moneyThe founder of Bitzlato, a cryptocurrency exchange, Anatoly Legkodymov, has pleaded guilty to federal charges for his involvement in illegally transporting and transmitting hundreds of millions of dollars’ worth of illicit funds.
The U.S. Department of Justice (DOJ) has stated that Legkodymov admitted to operating an unlicensed money-transmitting business at a Brooklyn federal court earlier this week.
Bitzlato reportedly became a hub for criminal proceeds and funds due to the absence of proper know-your-customer (KYC) procedures.
The exchange allegedly facilitated over $700 million worth of cryptocurrency transactions with users of the drug bazaar Hydra Market, which was shut down in April 2022.
“Bitzlato’s largest counterparty in cryptocurrency transactions was Hydra Market, an online marketplace for narcotics, stolen financial information, fraudulent identification documents, and money laundering services that was the largest and longest running darknet market in the world.”
Legkodymov was arrested in January as authorities when US authorities targeted Bitzlato with money laundering charges.
Says U.S. Attorney for the Eastern District of New York Breon Peace,
“Legkodymov’s guilty plea today confirms that he was well aware that Bitzlato, his cryptocurrency exchange, was being used like an open turnstile by criminals eager to take advantage of his lax controls over illicit money transactions.
The defendant may have thought he was operating from a safe haven overseas for his ‘No Questions Asked’ clearinghouse, but this prosecution and conviction demonstrate otherwise.”
Legkodymov agreed to dissolve Bitzlato and release all claims to $23 million of seized assets as part of the plea deal.
Stay tuned for more details about this and make sure to check out the markets as well. There are a lot of optimistic predicitons about the future of crypto these days.
Why this matters
This cryptocurrency story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
Original source
Read on CryptoGazetteRelated market context
Ethereum ETFs Lose $201.9 Million As Bitcoin Funds Return To Inflows
TL;DR: US spot Ethereum ETFs recorded $201.9 million in net outflows on October 6, according to Farside Investors. Bitcoin ETFs mo...
Ethereum Tests 200 Million Gas Limit On Sepolia As Glamsterdam Moves Forward
TL;DR: Ethereum’s Sepolia testnet is testing a 200 million block gas limit as part of work around the Glamsterdam upgrade. The exp...
US government moves $470 million in seized crypto to Coinbase wallets, raising Bitcoin sale questions
The US government moved about $470 million in seized crypto to likely Coinbase Prime addresses, according to Arkham, reviving ques...
U.S. Government Moves $103 Million in Seized Bitcoin and BNB, Sending BTC to Coinbase Prime
Wallets linked to the U.S. government moved $103.19 million in seized and forfeited crypto on Tuesday, Onchain Lens said in an X p...
Avalanche Tokenized Treasury Market Reaches $545 Million After Rapid Growth
TL;DR: Tokenized US Treasury assets on Avalanche have reached roughly $545 million, according to data highlighted this week. The s...
XRP Whales Dominate Exchange Outflows as Bitcoin Shorts Rise on Hyperliquid
The contrasting flows highlight a market where some large investors are moving XRP away from exchanges even as leveraged traders p...