The US Department of Justice has announced the conviction of Alexander Vinnik, a Russian citizen, for his involvement in money laundering activities connected to the BTC-e cryptocurrency exchange. Vinnik, who was part of the operations of BTC-e, oversaw transactions amounting to over $9 billion from 2011 to 2017 before the exchange was closed down by law enforcement. The platform had a user base of over a million individuals globally, including customers from the US.

Deputy Attorney General Lisa Monaco commented on the effectiveness of the Justice Department in combating cryptocurrency-related crimes through international collaboration. She emphasized the importance of tackling money laundering, overseeing crypto markets, and providing restitution to victims to prevent such crimes and ensure justice.

BTC-e was commonly used by cybercriminals worldwide to transfer, launder, and conceal profits from illicit activities such as computer hacking, ransomware attacks, identity theft, corruption, and drug trafficking. Operating BTC-e without registering as a money services business with FinCEN and failing to adhere to AML and KYC regulations contributed to facilitating criminal activities and causing substantial financial damages.

Despite handling substantial transactions in the US, BTC-e did not comply with regulatory requirements, which made it alluring to individuals seeking to obscure illicit gains. Vinnik utilized shell companies and financial accounts globally to sustain BTC-e's operations.

Penalties for these violations will be determined by a federal district court judge based on sentencing guidelines and legal considerations. In previous years, FinCEN imposed fines totalling approximately $110 million on BTC-e for violating AML laws and an additional $12 million on Vinnik for his complicity in these infringements.