December 8, 2023 at 01:06AM
Anatoly Legkodymov, the Russian founder of Bitzlato exchange, has pleaded guilty to operating an unlicensed money-transmitting service used for laundering criminal funds. He could face a five-year prison sentence. Bitzlato, linked to the darknet market Hydra, processed over $2.5 billion, with lax KYC measures.
Key Takeaways from Meeting Notes on Bitzlato Guilty Plea:
1. Anatoly Legkodymov, Russian founder of Bitzlato, has pleaded guilty to operating an unlicensed money-transmitting business.
2. Legkodymov was arrested in Miami roughly 11 months ago, earlier in the year.
3. The U.S. Justice Department states that Bitzlato facilitated laundering of illicit proceeds for criminals.
4. Legkodymov, also known by aliases including Gandalf and Tolik, faces a potential maximum sentence of five years in prison.
5. Bitzlato is accused of being the go-to platform for money launderers and criminal actors, having received approximately $2.5 billion in cryptocurrency transactions from 2019 to 2023.
6. Over half of Bitzlato’s transactions are believed to have stemmed from illegal or risky sources.
7. The exchange notably lacked stringent know-your-customer (KYC) procedures, which attracted users with minimal identification requirements; some reportedly used stolen identities.
8. The Hydra darknet marketplace, known for narcotics and money laundering activities, was identified as Bitzlato’s largest counterparty, with over $700 million in transactions.
9. Hydra, prior to being shut down in April 2022 by German and U.S. authorities, was a major dark web marketplace dealing in various illegal activities.
10. U.S. authorities assert Legkodymov’s guilty plea confirms his awareness of Bitzlato’s role in facilitating criminal transactions.
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