Image: Reuters
Prosecutors also tied him to the infamous collapse of Mt. Gox, a Japan-based bitcoin exchange that shut down in 2014 following a major hack. The US Justice Department alleged Vinnik “obtained” funds stolen from Mt. Gox and laundered them through BTC-e and Tradehill, another San Francisco-based exchange under his control.ALSO READ: Russia releases imprisoned American Marc Fogel in what US calls step toward end of Ukraine war
After being extradited to France and later to the US, Vinnik pleaded guilty in May 2024 to conspiracy to commit money laundering. Facing up to 20 years in prison, he was scheduled for sentencing in January, but a federal judge postponed the hearing until June without providing a reason, court records show.
The US Attorney’s Office for the Northern District of California previously said BTC-e processed over $9 billion in transactions between 2011 and 2017, serving more than a million users, including many in the US.
“BTC-e was one of the primary ways cybercriminals around the world transferred, laundered, and stored the criminal proceeds of their illegal activities,” the office stated last year, adding that the exchange handled money tied to hacking incidents, ransomware attacks, identity theft, corrupt public officials, and drug trafficking. Vinnik, prosecutors claimed, ran the platform “with the intent to promote these unlawful activities.”
On Tuesday, US District Judge Susan Illston held a status conference on Vinnik’s case, though no details of the discussion were disclosed.Journalist Andrei Zakharov, who has written extensively about Vinnik, suggested Moscow had a vested interest in securing his return, claiming he controlled 80,000 bitcoins stolen from Mt. Gox in 2011.
“80 thousand bitcoins. 8 billion dollars. 2% of federal budget revenues for 2025. Welcome home!” Zakharov posted on Telegram.
Who is Marc Fogel?
Marc Fogel, a 61-year-old American citizen and former teacher, was arrested in Russia in August 2021 after authorities found cannabis in his luggage at Moscow’s Sheremetyevo Airport.
He was sentenced to 14 years in a Russian penal colony on drug smuggling charges, a punishment that many in the US government and human rights organisations deemed excessively harsh.
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Fogel had been teaching at the Anglo-American School in Moscow and previously worked at international schools in Colombia, Venezuela, and Oman. His family and supporters argued that he had a doctor’s prescription for medical marijuana to treat chronic pain following spinal surgery, but Russian authorities dismissed this defence.
The US State Department has faced criticism for not initially designating Fogel as “wrongfully detained,” a label that could have expedited diplomatic efforts for his release.
With inputs from Reuters
