Co-founder of Bitzlato Pleads Guilty to Criminal Charges
Anatoly Legkodymov, the co-founder and majority owner of Bitzlato, has pleaded guilty to criminal charges in the US. Legkodymov, a Russian national, was arrested in January and was accused of facilitating money laundering for criminals and processing approximately $700 million in illicit funds. As part of his plea agreement, Legkodymov agreed to dissolve the exchange and forfeit around $23 million in seized Bitzlato assets.
Bitzlato as a Safe Haven for Ransomware Criminals
According to the US Attorney’s Office for the Eastern District of New York, Bitzlato served as a primary conduit for dark market purchasers and sellers and acted as a safe haven for ransomware criminals. Legkodymov’s guilty plea confirms that he was aware of the illicit activities taking place on the exchange.
“The defendant may have thought he was operating from a safe haven overseas for his ‘No Questions Asked’ clearinghouse, but this prosecution and conviction demonstrate otherwise.” – United States Attorney Breon Peace
“Bitzlato advertised a safe haven for fraudsters, thieves, and other criminals to launder illicit proceeds—but their business model didn’t account for federal law enforcement.” – Deputy Attorney General Lisa O. Monaco
Association with Hydra Market Confirmed
Legkodymov also confirmed Bitzlato’s association with Hydra Market, a darknet marketplace that was shut down in April 2022. Reports suggest that Bitzlato exchanged over $700 million in cryptocurrency with Hydra. Legkodymov could face up to five years in prison, but no sentencing date has been set.
Hot Take: Accountability for Cryptocurrency Exchanges
The guilty plea of Bitzlato’s co-founder highlights the importance of holding cryptocurrency exchanges accountable for their role in facilitating money laundering and other illicit activities. This case demonstrates that even platforms operating overseas cannot escape the reach of federal law enforcement. As authorities dismantle and disrupt the cryptocrime ecosystem, it sends a clear message to fraudsters and criminals that they will be prosecuted. This conviction serves as a significant step towards maintaining integrity and security within the cryptocurrency industry.
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