Russian Crypto Boss Behind $700M Scheme Arrested and Charged by US DOJ

• The founder of the Hong Kong-based cryptocurrency Bitzlato was arrested on Wednesday and accused of a $ 700 million crypto scheme.
• Legkodymov is charged with conducting an unlicensed money-transmitting business, if convicted, he faces a maximum penalty of five years in prison.

The U.S. Department of Justice (DOJ) has charged Anatoly Legkodymov, a Russian citizen and founder of crypto exchange Bitzlato, with allegedly processing over $700 million in illicit funds.

Legkodymov, who is currently living in China, is accused of operating Bitzlato as a money laundering platform for criminals. The exchange allowed users to trade cryptocurrencies without verifying their identities, and it also advised U.S.-based clients on how to transfer funds from U.S. financial institutions.

The DOJ alleges that Bitzlato processed over $4.5 billion worth of cryptocurrency transactions since it was launched in 2018. The exchange was connected to the Hydra market, a darknet marketplace that is known for selling drugs, stolen financial information, and hacking services.

Legkodymov is charged with conducting an unlicensed money-transmitting business. If convicted, he faces a maximum penalty of five years in prison.

The DOJ’s charges against Legkodymov are a sign that the government is taking a serious look at cryptocurrency exchanges that are used for criminal activity. The DOJ has also charged the founders of other crypto exchanges with money laundering, and it is likely that we will see more enforcement actions in the future.

The charges against Legkodymov are also a reminder that cryptocurrency can be used for illegal purposes. While cryptocurrency can be a legitimate way to store and transfer value, it is important to be aware of the risks involved. If you are considering using cryptocurrency, it is important to do your research and only use reputable exchanges.