Alexander Vinnik, the former owner of the now-defunct cryptocurrency exchange BTC-e, now faces a civil lawsuit to add to his already extensive list of international charges. The US is suing the Russian national for $12 million and the exchange for $88 million on the suspicion of violations of the Bank Secrecy Act.
The civil complaint against Vinnik and BTC-e was filed on July 25 in the Northern District of California. The document accuses the company and its owners of failing to register with the Financial Crimes Enforcement Network (FinCEN). It also states that the company did not observe anti-money laundering regulations.
BTC-e Used Cryptocurrency for Crime
The complaint posits that the cryptocurrency exchange operated without identity checks and was used by all manner of criminals to clean money. It claims that BTC-e handled funds from ransomware attacks, drug deals, identity fraud, embezzlement, and other illicit activity. Vinnik is currently being detained in Greece, while various governments seek his extradition. In addition to the recent civil filing, the U.S. accuses the former exchange operator of using the BTC-e exchange to launder as much as $9 billion. Bloomberg cites an apparent legal expert who mused that the $100 million civil suit is an effort to claim money that the U.S. criminal charges can’t reach or that may be seized by another government before them. As mentioned, there have been multiple governments seeking Vinnik’s extradition. His native Russia has two arrest warrants for fraud against him. Additionally, France has money laundering charges to the tune of $155 million against him. An initial U.S. extradition request was approved by a Greek court in October of 2017, however, Vinnik successfully appealed. The court later ruled in favor of France’s request.
A Wanted Man
Since there are so many conflicting extradition requests, the final decision is expected to be made by the minister of justice or another member of the Greek government. According to a report in the Russian news publication Tass, Vinnik was due to be released on July 25. However, a Thessaloniki court has extended his detention by six months. This is something that is possible in Greece in special cases. His lawyer, Timofei Musatov, explains:“His custody was to end on July 25. In exceptional cases, a council of judges gathers that can extend the period of custody for another six months.”Vinnik’s legal defense is reportedly planning to file an appeal against the extension while continuing to fight for his extradition to Russia. Earlier this year, a Greek court denied an appeal for his release. Greek news publications report that Vinnik had been on hunger strike for multiple weeks in protest of his detention in a country where he faces no charges prior to the decision. What do you think about Alexander Vinnik’s legal saga? Do you think the US will get its way? Let us know your thoughts in the comments below.
