Russian national Anatoly Legkodymov pleaded guilty to operating the Bitzlato cryptocurrency exchange that helped ransomware gangs and other cybercriminals launder over $700 million.
As a Bitzlato co-founder and principal stakeholder, Legkodymov has agreed to disband the cryptocurrency exchange and relinquish any rights to approximately $23 million in seized assets, as outlined in the plea agreement.
Legkodymov and other managers were also allegedly aware of the widespread illicit activity across Bitzlato accounts and that many users registered their accounts using stolen identities.
According to a Chainalysis report on cryptocurrency-related illicit activity, Bitzlato amassed over $2 billion in cryptocurrency transactions from 2019 to 2021.
A substantial portion-roughly $966 million, equivalent to nearly 48% of the total-was deemed illicit and associated with high-risk cryptocurrency transactions.
The report also highlights that the crypto exchange received funds amounting to $206 million sourced from darknet markets, $224.5 million stemming from scams, and $9 million obtained from ransomware attackers.
In collaboration with Europol and partners in Spain, Portugal, and Cyprus, French authorities also dismantled Bitzlato's digital infrastructure and seized its domains in January.
Held at the Metropolitan Detention Center in Brooklyn since he was arrested on January 18 in Miami, Legkodymov is now facing a maximum of five years in prison.
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This Cyber News was published on www.bleepingcomputer.com. Publication date: Thu, 07 Dec 2023 17:10:16 +0000