Russian Citizen Accused of Running Cryptocurrency Exchange Used by Criminals

WASHINGTON — A Russian citizen who ran a cryptocurrency exchange that federal prosecutors say transmitted at least $700 million in illicit funds has been arrested in Miami and charged with evading U.S. money-laundering safeguards, according to an indictment unsealed on Wednesday.

The Russian citizen, Anatoly Legkodymov, 40, oversaw the exchange based in Hong Kong, Bitzlato, which knowingly enabled criminals “to profit from their wrongdoing, including ransomware and drug trafficking,” Kenneth A. Polite Jr., the assistant attorney general of the Justice Department’s criminal division, said during a news conference on Wednesday.

The move was part of an intensifying effort by federal law enforcement agencies, in conjunction with European partners, to combat international cryptocurrency schemes and illegal transactions. In particular, they have sought to crack down on the activities of companies and people based in China and Russia operating in the unregulated corners of cyberspace know as the “darknet.”

If convicted, Mr. Legkodymov, who lives in Shenzhen, China, could face up to five years in prison. A senior law enforcement official, speaking on the condition of anonymity, said he was likely to face other charges, possibly connected to money laundering. It was not immediately clear who was representing Mr. Legkodymov, the company’s majority shareholder.

Article source: https://www.nytimes.com/2023/01/18/us/politics/russian-citizen-bitzlato-cryptocurrency.html