The founder of the Russian cryptocurrency exchange is asking U.S. President Donald Trump for a pardon to avoid extradition to France.
Despite serving time in the U.S., the founder of Bitzlato is concerned about being held in France for an additional 20 years, so he hopes the U.S. will reconsider the extradition decision to be fairer in the digital finance sector.
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The founder of Bitzlato, Anatoly Legkodymov, is calling on President Trump for a pardon to avoid extradition to France.
Bitzlato is accused of operating an unlicensed money transfer service, linked to criminal activities worth $700 million in cryptocurrency through the darknet.
The Bitzlato case follows international indictments of Russian cryptocurrency exchanges, such as Wex and BTC-e, raising concerns about global cryptocurrency regulation.
Why did the founder of Bitzlato request a pardon from the U.S. President?
According to lawyer Ivan Melnikov, Anatoly Legkodymov has officially submitted a request for a pardon to Donald Trump to avoid extradition to France, where he risks an additional 20-year sentence.
Melnikov, Vice President of the International Human Rights Committee branch in Russia, stated that this move stems from the desire to apply a fairer approach to digital finance and promote dialogue between the U.S. and Russia. He described Bitzlato as a 'trading notice board' rather than an illegal platform.
Anatoly is not a criminal. He is targeted in a campaign against the cryptocurrency market and talented Russian programmers.
Ivan Melnikov, Lawyer representing Bitzlato, 2024, TASS
What legal charges are facing Bitzlato and its founder?
In the 2023 trial in New York, Legkodymov admitted to operating an unlicensed money transfer service and agreed to pay a $23 million fine in cryptocurrency related to the exchange's operations.
According to the U.S. Department of Justice (DOJ), Bitzlato operates globally, allowing users to trade with very limited identity verification requirements, making the exchange a money laundering site for criminal activities, notably the darknet Hydra market – a major illegal trading platform in the Russian region with an estimated transaction value of approximately $700 million in cryptocurrency.
Due to a lack of strict customer verification processes, Bitzlato has become a haven for illegal money and serves criminal activities.
U.S. Department of Justice, statement accusing Bitzlato, 2023
What similarities does the Bitzlato case have with previous Russian cryptocurrency exchanges?
The Bitzlato case is not unique. Previously, the former CEO of Wex, a major cryptocurrency exchange in Russia, was also indicted by the United States for suspected fraud and money laundering.
Wex is a descendant of BTC-e – an exchange accused of laundering $9 billion for global criminal activities. Alexander Vinnik, who operated BTC-e, was arrested in 2017 and has served prison time in France and the U.S. before being exchanged between the U.S. and Russia.
Bitzlato Wex/BTC-e Factor Founder Anatoly Legkodymov (Russia) Alexander Vinnik (Russia) Operational Location Global, registered in Hong Kong Global Charges Operating an unlicensed money transfer service, facilitating darknet money laundering Money laundering, user funds misappropriation Legal Consequences 18 months in prison and facing extradition to France Sentenced to 5 years in prison in France and additional charges in the U.S. Related Asset Value $23 million in seized cryptocurrency $9 billion suspected of money laundering
How do industry insiders and officials evaluate these incidents?
Mr. Melnikov believes the prosecution of the Bitzlato founder is a “political campaign against crypto and Russian programmers.” However, the U.S. Department of Justice emphasizes that exchanges like Bitzlato have exacerbated many anonymous criminal activities.
The lack of genuine KYC procedures at Bitzlato has facilitated the growth of illegal funds and criminal activities on this platform.
DOJ, 2023
Frequently Asked Questions
What did the founder of Bitzlato admit to in court? He pleaded guilty to operating an unlicensed money transfer service and agreed to forfeit $23 million in cryptocurrency. How is the U.S. legal system handling the Bitzlato case? The Bitzlato boss was sentenced to 18 months in prison, has served time in the U.S. but is still being held due to an extradition request from France. What criminal activities is Bitzlato associated with? The exchange is accused of facilitating cryptocurrency transactions for criminal activities through the darknet Hydra, valued at $700 million. Why is President Trump being asked to intervene? The founder of Bitzlato hopes for a pardon to avoid extradition to France, based on the possibility that the U.S. may apply a fairer policy regarding digital finance. Does the Bitzlato case resemble any previous cases? This is a follow-up case after the Wex and BTC-e incidents, Russian cryptocurrency exchanges that were previously indicted for money laundering and other serious violations.
Source: https://tintucbitcoin.com/nga-bi-ket-an-tien-dien-tu-xin-an-xa/
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