Co-founder of Wex Admits Guilt and Asks Putin for Sentencing
The co-founder of Wex, a cryptocurrency exchange that succeeded BTC-e as Russia’s largest trading platform, has been sentenced to three and a half years in prison and a 500,000-ruble fine. Aleksey Bilyuchenko was accused of embezzling billions of rubles in customer funds. Despite seeking leniency from Russian President Vladimir Putin, Bilyuchenko received a relatively mild sentence due to reduced punishment requested by the state prosecutor and granted by the judge.
Wex’s Troubled History
Wex was founded after BTC-e, which was allegedly used for cybercriminal activities, was shut down by Western law enforcement in 2017. However, Wex went offline in 2018, resulting in customers losing an estimated 16 billion rubles. Court documents reveal that Bilyuchenko worked with BTC-e operator Alexander Vinnik to run the exchange between 2011 and 2017. While Vinnik was extradited to the United States to face trial, Bilyuchenko remains wanted by the FBI on charges of money laundering conspiracy and operating an unlicensed money services business.
Bilyuchenko’s Role in Wex
Bilyuchenko served as Wex’s system administrator while also controlling significant amounts of money. He admitted to distributing funds to security officials and others in exchange for protection. The owners of the exchange, reportedly connected to sanctioned Russian billionaire Konstantin Malofeev, suffered losses amounting to 3.17 billion rubles.
An Unusual Appeal
In a surprising turn of events, Bilyuchenko appealed to President Putin and Defense Minister Sergei Shoigu to be released from custody, spared punishment, and sent to the “zone of the special military operation” in Ukraine. It is speculated that he may be able to help recover some of the funds lost by Wex’s victims.
The Sentencing
Despite his appeal, the state prosecution requested a four and a half year prison term for Bilyuchenko. However, Judge Varvara Oganova reduced the sentence to three and a half years. Bilyuchenko, who changed his last name to Ivanov and pleaded guilty prior to the trial, had already spent a year and a half in pre-trial detention. In addition to the prison term, he will have to pay a fine of 500,000 rubles.
Hot Take: Wex Co-founder Receives Lenient Sentence Despite Embezzlement
The co-founder of Wex, Aleksey Bilyuchenko, has been given a relatively mild sentence of three and a half years in prison and a 500,000-ruble fine for embezzling customer funds. Despite seeking leniency from President Putin and making an unusual appeal to be sent to Ukraine’s military operation zone, Bilyuchenko’s sentence was reduced due to the state prosecutor’s request. This case highlights the challenges faced by law enforcement in prosecuting cryptocurrency-related crimes and recovering funds for victims. The sentencing also raises questions about the effectiveness of punishments for those involved in crypto scams.
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