Alexander Vinnik in alleged Bitcoin Laundering using BTC-e

Bitcoin Theft
Alexander Vinnik, a 38 year old Russian man (2nd L) suspected of running a money laundering operation, is escorted by plain-clothes police officers to a court in Thessaloniki, Greece July 26, 2017. REUTERS/Alexandros Avramidis

One of the largest Bitcoin exchanges was taken down last week by the US, the story made waves all over the internet and the details are now coming out on what went wrong for BTC-e.

Alexander Vinnik

On Thursday, the US Department of Justice charged Alexander Vinnik – thought to be one of the Administrators at the Bitcoin Exchange BTC-e, charging him with money laundering and a cascade of other crimes involving bitcoin. He is also being associated with the hacking of and stealing from Mt Gox exchange, which was one of the biggest exchanges back in 2013, handling over more than 70% of all Bitcoin trades.

The Gox incident in 2013, where 800K Bitcoins (approximating to $390 million at the time) were stolen from the exchange, it is said that some 500K of the stolen bitcoins were funneled through BTC-e in a bid to make them spendable, to turn it into white money. The wallets these coins were passing through are being associated to Vinnik.

It is said that some 500K of the stolen bitcoins were funneled through BTC-e in a bid to make them spendable

The alleged charges against Vinnik and by association, the Bitcoin Exchange BTC-e, tell us that the exchange was involved in extensive money laundering activity, and was also involved in transmitting and receiving funds from the infamous Ransomware attacks. Vinnik was arrested in Greece while on vacation, and is currently in the process of being extradited from Greece to the US. BTC-e meanwhile has been siezed by the US Department of Justice as can be seen by the notice on the website itself, and all associated funds and coins are currently seized.

Bitcoin BTC-e Exchange

BTC-e, being one of the largest exchanges around was being used by hundreds of thousands of users across the globe. However, recent dark market crackdowns suggest that law enforcement officials are taking an aggressive stance against cryptocurrency related thefts and incidents. This means, effectively, that the assets seized will not be returned to the users. There is a petition going on where the users are requesting the US to cooperate with the users. There is also a statement out from BTC-e, in Russian, but the crux is  they are hoping they get access to the exchange so that they can help the users get their money, or part of it back.

It is suggested meanwhile, to keep your coins safely in wallets and to stay away from exchanges until you know who you are working with and what do they stand for.



Hi, Hello, Welcome! You can call me Johnny, though i admit it seems a cheeky little name. I am by profession a Project Manager at a reputed multi-national IT Company. I usually work in the education space in my country. By Education though, i am a Metallurgical Engineer. What was that? IT and Metallurgy don't go together? Yes well, that is correct, i'm speechless. My interests primarily involve Technology and new innovations, Bitcoin & Cryptocurrencies, Books (Novels of any kind really) & Gaming. I love to communicate and share my knowledge whether it is a moral dilemma or a new happening in technical world! Feel free to reach out for anything and everything!!

3 thoughts on “Alexander Vinnik in alleged Bitcoin Laundering using BTC-e

  • August 1, 2017 at 11:52 pm

    Can you buy stock, if so how much can you invest, or what’s the smallest you can invest

    • August 2, 2017 at 10:47 am

      Hi Shirley

      When you say Stock, are you talking about buying into Bitcoin itself, or are you referring to the regular Stock you hear regularly around about?

      If it is the regular stock, i would advise you to look into other forums which can give you more specific knowledge. If you are looking into Bitcoin, you can start with any amount of money, there is no lower limit. You can buy it, and keep it with you in your wallet for however long you like, or sell it on the market whenever you like.

  • August 7, 2017 at 2:01 pm

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