Belarusian Man Charged for Role in BTC-e Operations
~1 min read | Published on 2024-02-09, tagged Cryptocurrency, Indicted, Money-Laundering using 239 words.
The US Department of Justice has charged a Belarusian and Cypriot national for his involvement in the operation of the now-defunct cryptocurrency exchange, BTC-e.
The indictment filed in July 2022, accuses 42-year-old Aliaksandr Klimenka of conspiring in the operation of BTC-e from 2011 and July 2017. The exchange was used in the laundering of more than $4 billion in criminal proceeds. Klimenka is also accused of operating Soft-FX, a technology services company, and FX Open, a financial company.
BTC-e allowed its users to trade cryptocurrencies anonymously, and as a result, a significant amount of the crypto traded on the exchange originated from criminal activities. The exchange made it possible for drug traffickers, fraudsters, corrupt public officials, and hackers to launder the proceeds of their illicit activities.
Investigators linked BTC-e to the MT. Gox hack. The hackers allegedly used three BTC-e accounts to move over 300,000 of the bitcoin stolen from MT. Gox.
Investigations into the operations of BTC.e revealed that its servers were located in the US. The servers were allegedly leased and maintained by Soft-FX and Klimenka.
Klimenka conspired with Alexander Vinnik and Alexey Bilyuchenko, both Russian nationals, and others in the operation of BTC-e.
The two-count indictment charges Klimenka with conspiracy to commit money laundering and operation of an unlicensed money-transmitting business.
Klimenka was arrested in Latvia on December 21, 2023, and extradited to the United States.
He faces a maximum sentence of 25 years in prison if convicted.
The BTC-e seizure banner
The indictment filed in July 2022, accuses 42-year-old Aliaksandr Klimenka of conspiring in the operation of BTC-e from 2011 and July 2017. The exchange was used in the laundering of more than $4 billion in criminal proceeds. Klimenka is also accused of operating Soft-FX, a technology services company, and FX Open, a financial company.
BTC-e allowed its users to trade cryptocurrencies anonymously, and as a result, a significant amount of the crypto traded on the exchange originated from criminal activities. The exchange made it possible for drug traffickers, fraudsters, corrupt public officials, and hackers to launder the proceeds of their illicit activities.
Investigators linked BTC-e to the MT. Gox hack. The hackers allegedly used three BTC-e accounts to move over 300,000 of the bitcoin stolen from MT. Gox.
Investigations into the operations of BTC.e revealed that its servers were located in the US. The servers were allegedly leased and maintained by Soft-FX and Klimenka.
Klimenka conspired with Alexander Vinnik and Alexey Bilyuchenko, both Russian nationals, and others in the operation of BTC-e.
The two-count indictment charges Klimenka with conspiracy to commit money laundering and operation of an unlicensed money-transmitting business.
Klimenka was arrested in Latvia on December 21, 2023, and extradited to the United States.
He faces a maximum sentence of 25 years in prison if convicted.
