The Rise and Fall of BTC-e Bitcoin Exchange

BTC-e was founded in 2011 by a mysterious figure known only by their pseudonym, Alexander Vinnik. It quickly gained popularity among Bitcoin enthusiasts due to its ease of use and relatively low fees.

The exchange was known for its lack of strict regulations and verification requirements, which made it an attractive option for users from all over the world. This also led to concerns about money laundering and other illicit activities.

In 2017, BTC-e was hit with a lawsuit from the US Department of Justice, alleging that it had facilitated money laundering for Russian hackers. The lawsuit claimed that the exchange had processed over $4 billion in transactions for the hackers.

BTC-e's troubles continued to mount, and in 2017, it was shut down by the Greek authorities, who froze its assets and arrested its operator, Alexander Vinnik.

BTC-e was established in July 2011, handling a few coin pairs, including Bitcoin/U.S. dollar and I0Coin to Bitcoin.

By October 2011, they supported many different currency pairs, including Litecoin to dollars, Bitcoin to rubles, and RuCoin to rubles.

The BTC-e website went offline on 25 July 2017, following the arrest of BTC-e staff members and the seizure of server equipment at one of their data centers.

Alexander Vinnik, the alleged operator of BTC-e, was first arrested in 2017 and faced a lengthy extradition process that saw him spend time in Greece and France before being sent to the U.S.

Vinnik was convicted and sentenced to 5 years in prison in France, while refusing to testify during his trial.

He was acquitted on involvement with the Locky ransomware charges.

WEX tokens were created to represent customers' seized equity until its funds were also seized by the US Government.

Alexander Vinnik, the operator of the defunct crypto exchange BTC-e, pleaded guilty to money laundering conspiracy charges in the US.

Vinnik was responsible for a loss of at least $121 million through the BTC-e exchange as part of the unlawful activities.

BTC-e processed over $9 billion in transactions and served over a million users worldwide, including numerous customers in the US.

The exchange operated without registering as a money services business, using shell companies and financial accounts across the globe.

BTC-e was one of the primary ways by which cybercriminals transferred, laundered, and stored the proceeds of their illegal activities.

Aliaksandr Klimenka, a Belarusian and Cypriot national, was also charged with money laundering conspiracy and operation of an unlicensed money services business.

If convicted, Klimenka could face up to 25 years in prison.

BTC-e was linked to the hack of Mt. Gox, the biggest cryptocurrency exchange from 2010 to 2013.

The platform collected virtually no customer data, making it attractive to those who desired to conceal criminal proceeds from law enforcement.

BTC-e did not operate any know-your-customer or anti-money laundering rules.

Here are some key statistics about the BTC-e scandal:

Alexander Vinnik, a Russian operator, pleaded guilty to participating in a money laundering scheme while running the BTC-e Bitcoin exchange.

BTC-e processed over $9 billion in transactions and served over a large number of users during its operation from 2011 to 2017.

Two Russian nationals, Alexey Bilyuchenko and Aleksandr Verner, have been charged with the hack of the cryptocurrency exchange Mt. Gox in 2011 and the operation of the illicit cryptocurrency exchange BTC-e.

Greek authorities will extradite Alexander Vinnik to France to face a charge of money laundering.

Greek Police arrested a Russian man, Alexander Vinnik, and accused him of running the BTC-e Bitcoin exchange to launder more than $4 billion worth of the cryptocurrency.

Alexander Vinnik allegedly headed the Bitcoin exchange BTC-e and is suspected of money laundering.