Former Crypto Exchange CEO Pleads Guilty to Unlicensed Money Transmitting Charges
Anatoly Legkodymov, the former CEO of crypto exchange Bitzlato, has admitted to operating an unlicensed money-transmitting business. The U.S. Department of Justice (DOJ) revealed that Bitzlato did not have proper know-your-customer (KYC) procedures in place, making it attractive to criminals seeking to launder money. The exchange also facilitated over $700 million worth of cryptocurrency transactions with users of the now-defunct Hydra Market, an online marketplace for illegal activities.
Prosecution Highlights Lax Controls Over Illicit Money Transactions
Legkodymov’s guilty plea confirms that he was aware of the illicit activities taking place on Bitzlato. U.S. Attorney for the Eastern District of New York Breon Peace emphasized that the defendant’s lax controls allowed criminals to exploit the exchange for their illegal transactions. Despite thinking he was operating from a safe haven overseas, Legkodymov’s conviction shows otherwise.
Plea Deal and Asset Seizure
In exchange for his guilty plea, Legkodymov agreed to dissolve Bitzlato and forfeit any claim over approximately $23 million worth of seized assets from the platform.
Hot Take: Former Crypto Exchange CEO Pleads Guilty to Money Transmitting Charges
Former Bitzlato CEO Anatoly Legkodymov has pleaded guilty to charges related to operating an unlicensed money-transmitting business. The lack of proper KYC procedures made the exchange attractive to criminals, leading to illicit transactions worth over $700 million with Hydra Market users. Legkodymov’s guilty plea confirms his knowledge of these activities and highlights the lax controls over illicit money transactions on Bitzlato. As part of his plea deal, Legkodymov will dissolve the exchange and forfeit around $23 million worth of seized assets.
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