Home Internet Alexander Vinnick Bitcoin Exchange Founder Jailed For Money Laundering

Alexander Vinnick Bitcoin Exchange Founder Jailed For Money Laundering

If you’ll recall, around $480 million worth of Bitcoins disappeared from the exchange service back in 2014 due to, as Mt. Gox CEO Mark Karpeles called them, "weaknesses in the system."

Alexander Vinnick Bitcoin Exchange Founder Jailed For Money Laundering - Ravzgadget
Alexander Vinnick Bitcoin Exchange Founder Jailed For Money Laundering / Photo credit: Engadget

Alexander Vinnick, the Russian man who founded and ran the now-defunct Bitcoin exchange operation BTC-e, has been slammed five years jail term. A Paris court has found Vinnick guilty of money laundering and has ordered him to pay €100,000 (US$121,000) in fines.

MORE FROM RAVZGADGET: China Moves Towards Stronger Economy As You Can Now Spend Country’s Digital Currency At Online Stores

Alexander Vinnick was arrested in Greece back in 2017 under an international warrant issued by the US Department of Justice and was extradited to France earlier this year.

The Justice Department accused Vinnick of operating BTC-e as a front for a massive money laundering operation that accepted stolen funds from cyberattacks. Security firm Wizsec previously linked his private BTC-e accounts to funds stolen from Mt. Gox.

If you’ll recall, around $480 million worth of Bitcoins disappeared from the exchange service back in 2014 due to, as Mt. Gox CEO Mark Karpeles called them, “weaknesses in the system.”

The US DOJ charged Vinnick with 17 counts of laundering up to $4 billion since the exchange was founded in 2011. Meanwhile, French prosecutors charged him for “extortion, conspiracy and harming automatic data-processing systems.”

French authorities believe he helped create the ransomware “Locky,” which was spread through email and was used to attack French businesses and organizations between 2016 and 2018. At least 20 entities in the country ended up paying ransom money in Bitcoin to get their networks freed.

Vinnik’s side argued in court that he was only a technical operator carrying out instructions from BTC-e’s directors. While the court still ended up convicting him for money laundering, it’s hardly the worst-case scenario for Vinnick.

MORE FROM RAVZGADGET: Google Considers Ban On IAC’s Chrome Extensions Over Deceptive Practices

According to ZDNet, French prosecutors were only able to prove one of the 14 charges brought against him, and it wasn’t the one involving Locky. That means he was able to avoid the 10-year sentence and the €750,000 fine the prosecutors had requested.

Stay connected to trending technology news by following @Ravzgadget on Twitter and Like our page on facebook.com/ravzgadget.

Share this article with friends
5 1 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x