Alexander Vinnik, the co-founder of Bitcoin exchange BTC-e, has been released from US custody as part of a prisoner swap with Russia.
Background
- BTC-e was one of the largest crypto exchanges when it was operational (2011-2017)
- The firm hadn’t enforced any KYC/AML norms
- DOJ authorities believe that the exchange helped launder more than $4 billion in criminal proceeds
- Vinnik was arrested in Greece in 2017 and ultimately extradited to the US
- In May last year in San Francisco, he pleaded guilty to conspiracy to commit money laundering
Why should you pay attention?
- As a part of the US-Russia prisoner exchange, Vinnik is being swapped with school teacher Marc Fogel
- He, in turn, was held captive in Russia for three-and-a-half years
- Fogel taught in the Anglo-American School of Moscow
- He has been in Russian custody since 2021 owing to the illegal possession of cannabis at the airport
Who said what?
- Marco Rubio, Secretary of State, said in a released statement,
“Promises made, promises kept. President Trump promised the Fogel family he would bring Marc home, and today, Marc is on his way. After three and a half years of detention in Russia, Marc is finally free”
- He added,
“Marc’s release is also a reminder that other American citizens are still detained in Russia. President Trump is committed to bringing all of them home”
- Meanwhile, Frédéric Bélot, Vinnik’s French lawyer who had pushed for a deal to free him, exclaimed,
“It is a real relief for my client and his family”
Zooming out
- US Envoy for Hostages Adam Boehler underlined that Trump was "deeply involved" in negotiations
- Via a social media post, Trump thanked Russian President Vladimir Putin for Fogel’s release
- On the other hand, Vinnik’s US lawyer Arkady Bukh highlighted that his supporters were ready to argue that he should be sentenced to no additional prison time, given the years he had already spent in prison
- Nevertheless, a release to Russia — without completing a prison sentence in the US — means Vinnik will unlikely face extradition to any other country that is pursuing another case against him
