The Justice Department says Anatoly Legkodimov operated the Hong Kong-registered exchange Bitzlato as a haven for money laundering.
Published on January 18, 202318 January 2023
United States authorities have arrested a Russian national accused of running a Hong Kong-registered cryptocurrency exchange as a money laundering enterprise.
The U.S. Department of Justice said Anatoly Legkodymov, 40, a Russian living in Shenzhen, China, is expected to be indicted on Wednesday for his role in transferring a total of $700 million in illicit funds through the virtual currency exchange Bitzlato, which marketed itself as from users requires minimal identification.
The arrest was made in cooperation with the U.S. Treasury Department’s Financial Crimes Enforcement Network and foreign authorities, officials said.
“Overnight, the department worked with key partners here and abroad to disrupt Bitzlato, a Chinese money-laundering mechanism fueling a high-tech crypto-crime axis, and to arrest its founder, Russian national Anatoly Legkodimov,” US Deputy Attorney General Lisa Monaco told reporters in Washington, DC.
“Today’s actions send a clear message: Whether you break our laws in China or Europe — or abuse our financial system on a tropical island — you can expect to be held accountable for your crimes in a United States courtroom,” he added. Monaco.
The arrest comes less than a month after the Justice Department announced the extradition of another cryptocurrency executive, Sam Bankman-Fried, the former CEO of failed cryptocurrency firm FTX. He was staying in the Bahamas and is facing fraud and money laundering charges.
The US Department of Justice hailed Legkodymov’s arrest in Miami, Florida on Tuesday night as a “blow to the crypto-criminal ecosystem”.
Officials said the exchange catered to “known fraudsters,” including criminals who sought refuge for money made from drug dealing and the sale of stolen financial information.
Al Jazeera’s Alan Fischer reported from Washington that Treasury Department officials said on Wednesday “that many of the people using this site are Russians and Russian criminals and that they have been laundering money”.
“This suggests that Russian criminals would not be able to do business if the authorities in Russia, the Russian government, did not allow them to do so. So [US officials] believe that some of the money that goes through this exchange is also being used to help finance Russia’s war in Ukraine,” he said.
Asked at a press conference whether Bizlato had helped Russia evade sanctions related to its invasion of Ukraine, US Treasury Undersecretary Wally Adeyemo said: “What we know is that Russia has set up an ecosystem that is enabling for cybercriminals.”
Bitzlat’s biggest transaction partner was Hydra, an anonymous online “darknet” marketplace that was shut down by US and German authorities last year.
Hydra sold illegal drugs, stolen credit card information, counterfeit currency, and forged IDs, concealing the identities of those involved through encryption.
According to the German Federal Police, the Hydra marketplace had about 17 million customer accounts and more than 19,000 seller accounts when it was shut down in April 2022.
The so-called “darknet” includes websites that can only be accessed with special software or authorizations, guaranteeing users anonymity.
Prosecutors said Bitzlato processed $4.58 billion worth of cryptocurrency transactions as of May 3, 2018, but not all of the transactions involved criminal activity.
Legkodymov is accused of “carrying out an unlicensed money transfer business.” He faces a maximum of five years in prison if convicted.
What will Bitcoin do in 2023?
What is the future of Bitcoin in 2023? They predicted that bitcoin could fall to the $5,000 level in 2023. Experts believe that rising interest rates and tighter monetary policy will prevent bitcoin from gaining much traction in the near future. As in this kind of uncertain market, investors will not prefer to invest or buy risky assets like bitcoin.
Will crypto recover 2023?
After a turbulent year in the cryptocurrency space, the prices of some of the major coins in 2023 seem to be finally showing signs of recovery. Experts estimate that approximately $1.4 trillion will be wiped out of the crypto space in 2022.
How high will Bitcoin go in 2023?
As inflation moderates, energy prices stabilize, and the crisis in Ukraine (potentially) subsides, Sigel predicts that bitcoin prices could climb back to $30,000 in the third and fourth quarters of 2023. On the same subject : NOTE: U.S. Women’s Peace and Security Report to Congress.
Will crypto come back in 2023?
After being plagued by losses for much of last year, bitcoin and other cryptocurrencies are on the rise in 2023, fueling speculation that the so-called crypto winter – the end of a bear market in the world of digital assets – is over. To see also : Patient care estimates.
Is cryptocurrency expected to rise again? Crypto exchange Bitbank predicts that bitcoin prices will recover to between $20,000 and $50,000 in the second half of 2023, but only if the Federal Reserve can stop raising interest rates by mid-2023 and start cutting interest rates by early 2024.
Will 2023 be a good year for crypto?
2023 will be a year of recovery for people looking to get back into real estate investing with cryptocurrencies as rates rise across the country. See the article : What is ‘lifestyle inflation’?.
Which crypto is best for 2023?
Ethereum: Investing in Ethereum is expected to be the best investment decision for 2023. This is due to the fact that the value of Ethereum is stable and has grown significantly since 2021.
Will crypto boom in 2023?
This is part of the crypto cycle. The key to being a great crypto investor is to buy when the bust starts to turn into a boom – that’s when millionaires are made in this industry. And the bust of 2022 will soon turn into the boom of 2023.
Will Crypto Rise Again in 2023? In Analytics Insight, Sanyal says that market analysts predict that Bitcoin could reach $100,000 by the end of 2023, while others say that it may climb to that mark in the first quarter of 2022.
Which cryptocurrency will rise in 2023?
Ethereum: Investing in Ethereum is expected to be the best investment decision for 2023. This is due to the fact that the value of Ethereum is stable and has grown significantly since 2021.
Which cryptocurrency is best to invest in 2023?
1. Meta Masters Guild (MEMAG) – Overall Best New Cryptocurrency Issue of 2023 Meta Masters Guild is the Best New Cryptocurrency Issue of 2023.
Does cryptocurrency has a future?
Bitcoin is the indicator of the crypto market with the largest market capitalization, and the rest of cryptocurrency follows its path. Fears of a global recession are affecting stocks and currencies. Because of this, despite the high volatility of the trade, some experts are hopeful that 2023 is likely to see a bit of a revival in cryptocurrencies.
Is cryptocurrency a good investment for the future? Cryptocurrency can be a great investment with astronomical overnight returns; but there is also a considerable weakness. Investors should analyze whether their time frame, risk tolerance and liquidity requirements match their investor profile.
Is crypto have a future?
The digital currency has grown nearly 70 percent since the start of 2021, bringing the entire crypto market to a combined value of $2 trillion. Looking at the future of cryptocurrency, if the past is any indication, crypto investors are in for an exciting ride.
