US Arrests Russian Crypto Boss For Alleged Criminal 'haven'
Muhammad Irfan Published January 18, 2023 | 11:29 PM
US authorities said Wednesday they had arrested the owner of China-based cryptocurrency exchange Bitzlato for alleged money laundering, hailing the move as a global "blow to the cryptocrime ecosystem." Anatoly Legkodymov, 40, a Russian living in Shenzhen, China, was held in Miami overnight and was due to appear in court in the city during the day, the Department of Justice said at a press conference
Washington, (UrduPoint / Pakistan Point News - 18th Jan, 2023 ) :US authorities said Wednesday they had arrested the owner of China-based cryptocurrency exchange Bitzlato for alleged money laundering, hailing the move as a global "blow to the cryptocrime ecosystem." Anatoly Legkodymov, 40, a Russian living in Shenzhen, China, was held in Miami overnight and was due to appear in court in the city during the day, the Department of Justice said at a press conference.
He was detained for his role in allegedly transmitting a total of $700 million in illicit funds, the department said, pointing to criminals using the exchange as a haven for narcotics trading and selling stolen financial information.
According to court documents, Legkodymov is the founder and majority shareholder of Hong Kong-registered Bitzlato, which has marketed itself as requiring minimal identification from users.
Bitzlato's largest partner for transactions was Hydra, an anonymous, illicit online marketplace on the "darknet" that was shut down by US and German authorities last year.
Hydra sold illegal drugs, stolen credit card data, counterfeit Currency and fake identity documents, masking the identities of those involved using encryption.
- 'Darknet' transactions - "Today the Department of Justice dealt a significant blow to the cryptocrime ecosystem," US Deputy Attorney General Lisa Monaco told reporters in Washington.
"Overnight, the Department worked with key partners here and abroad to disrupt Bitzlato, the China-based money laundering engine that fueled a high-tech axis of cryptocrime, and to arrest its founder, Russian national Anatoly Legkodymov.
" Monaco said that "today's actions send the clear message: whether you break our laws from China or Europe -- or abuse our financial system from a tropical island -- you can expect to answer for your crimes inside a United States courtroom." When it was closed in April 2022, the Hydra marketplace had around 17 million customer accounts and more than 19,000 vendor accounts, according to German Federal police.
The secret "darknet" includes websites that can be accessed only with specific software or authorizations, ensuring anonymity for users.
Such networks have faced increased pressure from international law enforcement after a boom in usage during the coronavirus pandemic.
"As alleged, Bitzlato sold itself to criminals as a no-questions-asked cryptocurrency exchange, and reaped hundreds of millions of Dollars' worth of deposits as a result," said Breon Peace, Attorney for the Eastern District of New York.
"The defendant is now paying the price for the malign role that his company played in the cryptocurrency ecosystem.
"Bitzlato allegedly became a haven for criminal proceeds and funds intended for use in criminal activity."In May 2019, Legkodymov allegedly used Bitzlato's internal chat system to write to a colleague that users were "known to be crooks" using others' identity documents to register accounts.
The United States said that, as the arrest was announced, French authorities, working with Spain, Portugal and Cyprus, dismantled Bitzlato's digital infrastructure and seized cryptocurrency.
Related Topics
Recent Stories
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 26 April 2024
Today Gold Rate in Pakistan 26 April 2024
ICC Womens T20 World Cup Qualifier, Match 2: Ireland Women open with Comfortable ..
Robinson, bowlers help New Zealand go 2-1 up against Pakistan
Shahzeb Chachar to hold khuli kachehri on April 26
Heatwave amid Israel's aggression in Gaza brings new misery, disease risk
Tourism must change, mayor says as Venice launches entry fee
Court adjourns Judicial Complex attack case till May 17
Nasreen Noori’s book ‘Popatan Jahra Khwab’ launched
Wafaqi Mohtasib inspection team visits Excise and taxation office
AJLAC announces 5th Conference titled ‘People’s Mandate: Safeguarding Civil ..
Pak-US officials engage to enhance trade, investment ties
More Stories From Business
-
Exchange rates for currency notes
50 minutes ago -
Foreign exchange rates
1 hour ago -
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 26 April 2024
2 hours ago -
Today Gold Rate in Pakistan 26 April 2024
2 hours ago -
Chinese minister felicitates Ahsan Iqbal on reappointment as Planning minister
11 hours ago -
Pak-US officials engage to enhance trade, investment ties
12 hours ago
-
Stocks fall as tech shares sink, US economy slows
13 hours ago -
Higher taxes, awareness help decrease cigarettes sale in Pakistan
14 hours ago -
Ahsan Iqbal chairs CPEC JWGs, 13th JCC review-meeting
14 hours ago -
Industries Minister recommends urea fertilizer import to stabilize prices and supply
14 hours ago -
Honda announces US$11 bn EV battery and vehicle plant in Canada
14 hours ago -
Zhao Shirin calls on Punjab Industries Minister
14 hours ago