In a significant development, a Belarusian national is now facing charges of money laundering conspiracy and operating an unlicensed money services business, allegedly spearheading the notorious digital currency exchange, BTC-e.
As disclosed by the Office of Public Affairs at the US Department of Justice, the indictment covers the period from 2011 to July 2017, exposing a complex web of criminal activities including cybercrime, online money laundering, and a range of illicit transactions.
The Alleged Criminal Network
The indictment points to Aliaksandr Klimenka, Alexander Vinnik, and others as figures in control of BTC-e. This exchange is identified as a major center for cybercrime and online money laundering, providing users with the means to trade Bitcoin anonymously and fostering a customer base heavily involved in criminal activities.
BTC-e is implicated in facilitating transactions spanning various crimes, such as computer hacking, identity theft, ransomware scams, and drug trafficking. Despite conducting substantial business in the US, the exchange allegedly operated without proper registration as a money services business and lacked necessary anti-money laundering protocols.
The indictment underscores the absence of a Know Your Customer verification system and an anti-money laundering program, both mandated by federal law. The 42-year-old Belarusian, Aliaksandr Klimenka, was apprehended on December 21, 2023, in Latvia at the request of the US. If convicted, Klimenka could face a maximum penalty of 25 years in prison, signaling a strong stance against individuals involved in illicit financial activities.
International Collaboration Against Cryptocurrency Crimes
This case exemplifies the collaboration of various investigative agencies, including the US Secret Service, Federal Bureau of Investigation, IRS Criminal Investigation, and Homeland Security Investigations.
The National Cryptocurrency Enforcement Team (NCET), a crucial entity in prosecuting those enabling the illicit use of cryptocurrencies, is actively involved in this matter. The global nature of financial crimes is highlighted by the collaboration between the Justice Department’s Office of International Affairs and the Latvian government to secure Klimenka’s arrest, emphasizing the importance of international cooperation in combating cryptocurrency-related offenses.
The ongoing efforts against the illicit use of cryptocurrencies and digital assets are evident in the establishment of the NCET. This team is dedicated to investigating and prosecuting crimes involving virtual currency exchanges, mixing and tumbling services, and infrastructure providers, as emphasized by US authorities.
