The founder of bitcoin exchange BTC-e will face charges in the United States, a US Justice Department statement confirmed. Alexander Vinnik was arrested in Greece July 26 on money laundering charges. Vinnik's arrest was the result of a multi-agency investigation with cooperation from international law enforcement agencies.
The statement from USDOJ addressed the role BTC-e played in the alleged crimes:"The indictment alleges BTC-e was operated to facilitate transactions for cybercriminals worldwide and received the criminal proceeds of numerous computer intrusions and hacking incidents, ransomware scams, identity theft schemes, corrupt public officials, and narcotics distribution rings."
It went on to address Mr. Vinnik's role:"As to Vinnik, the indictment alleges that he received funds from the infamous computer intrusion or “hack” of Mt. Gox... by moving funds through BTC-e, Vinnik sought to conceal and disguise his connection with the proceeds from the hacking of Mt. Gox and the resulting investigation." Large Fines and Long Prison Time
Charges in the case carry a combined maximum prison term of 385 years, as well as hefty fines. BTC-e has already been hit with a fine from FinCEN amounting to $110 million as a civil penalty for its part in the activity. Mr. Vinnik personally faces $12 million in civil fines.
Criminal sentencing could result in criminal fines for both Vinnik and his company, on top of the civil fines. Both the corporation and its executive face the same criminal charges. For Mr. Vinnik though, these charges bear a potentially lengthy prison term.Criminal charges from the indictment: operation of an unlicensed money service business | 1 count | 5 years conspiracy to commit money laundering | 1 count | 20 years, + $500,000 fine or twice the value of the property involved money laundering | 17 counts | 20 years, +$500,000 fine or twice the va...