Mueller’s Russia investigation uncovers crypto exchange used to launder money

  • September 5, 2018
  • 10:05 am ET

Img via CNN

Special counsel Robert Mueller is processing several indictments related to money laundering efforts on Alexander Vinnik’s BTC-e exchange. Alexander Vinnik has been indicted for helping to launder up to $9 billion in Bitcoin.

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Alexander Vinnik, a Russian citizen currently in a Greek prison, has been indicted for his role in a cryptocurrency exchange that helped launder billions of dollars for the Russians.

U.S. Special Counsel Robert Mueller is trying to uncover how the Russians were able to hide their money trail using bitcoin.

The $9 billion in currency transfers have been linked a Russian military intelligence hacking operation called Fancy Bear that was not required to undergo any KYC/AML policies on Vinnik’s BTC-e exchange.

Crypto data analytics firm Elliptic was able to use the details provided in the indictment to scrub the blockchain and identify patterns of activity by the Russian agents.

Elliptic Chief Data Officer Tom Robinson said:

“There was a strong link between much of the funds allegedly used by the Fancy Bear group and BTC-e. What I can’t say for certain is whether Fancy Bear obtained them directly from BTC-e, or whether there was an intermediary.”

Vinnik has claimed to have no knowledge of any illicit money laundering and is in the process of being extradited from Greece.


Via Bloomberg • h/t CCN

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