Office of Public Affairs Founder and Majority Owner of Cryptocurrency Exchange Pleads Guilty to Unlicensed Money Transmitting United States Department of Justice
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ppArchived NewsppPara Notícias en EspañolppThe founder and majority owner of Bitzlato Ltd Bitzlato a cryptocurrency exchange that served as a primary conduit for dark market purchasers and sellers as well as a safe haven for illicit transactions by ransomware criminals pleaded guilty today to operating a money transmitting business that transmitted illicit fundsppIn connection with his plea agreement Anatoly Legkodymov aka Anatolii Legkodymov Gandalf and Tolik 41 who is a Russian national and resided in Shenzen Peoples Republic of China agreed to dissolve Bitzlato and to release any claim over approximately 23 million in seized assets of BitzlatoppAs alleged Bitzlato advertised a safe haven for fraudsters thieves and other criminals to launder illicit proceeds but their business model didnt account for federal law enforcement said Deputy Attorney General Lisa O Monaco We are dismantling and disrupting the cryptocrime ecosystem using all tools available including criminal prosecution In January the Department and our partners took down Bitzlatos infrastructure and seized its cryptocurrency Todays conviction of Bitzlatos founder is the latest product of our effortsppLegkodymov operated a cryptocurrency exchange that was open for business to money launderers and other criminals said Acting Assistant Attorney General Nicole M Argentieri of the Justice Departments Criminal Division He profited from catering to criminals and now he must pay the price Transacting in cryptocurrency does not put you beyond the reach of the law Legkdoymovs plea demonstrates the consequences for those who would offer a safe haven for criminals and their illgotten gainsppAccording to court documents Bitzlato a Hong Kongregistered cryptocurrency exchange that operated globally marketed itself as requiring minimal identification from its users specifying that neither selfies nor passports are required On occasions when Bitzlato did direct users to submit identifying information it repeatedly allowed them to openly provide information belonging to straw man registrants As a result of these deficient knowyourcustomer KYC procedures Bitzlato allegedly became a haven for criminal proceeds and funds intended for use in criminal activityppLegkodymovs guilty plea today confirms that he was well aware that Bitzlato his cryptocurrency exchange was being used like an open turnstile by criminals eager to take advantage of his lax controls over illicit money transactions said US Attorney Breon Peace for the Eastern District of New York The defendant may have thought he was operating from a safe haven overseas for his No Questions Asked clearinghouse but this prosecution and conviction demonstrate otherwiseppBitzlatos largest counterparty in cryptocurrency transactions was Hydra Market an online marketplace for narcotics stolen financial information fraudulent identification documents and money laundering services that was the largest and longestrunning darknet market in the world Hydra Market users exchanged more than 700 million worth of cryptocurrency with Bitzlato either directly or through intermediaries until Hydra Market was shut down because of seizures made by US and German law enforcement in April 2022 Bitzlato also received millions of dollars worth of ransomware proceeds Legkodymov was repeatedly advised that cryptocurrency routed through Bitzlato represented the proceeds of crime andor was intended for use in illicit transactionsppLegkodymov faces a maximum penalty of five years in prison A sentencing date has not yet been set A federal judge will determine any sentence after considering the US Sentencing Guidelines and other statutory factorsppThe FBI is investigating the caseppThe investigation was jointly prosecuted by the US Attorneys Office for the Eastern District of New York EDNY and the Criminal Divisions Computer Crime and Intellectual Property Section CCIPS and National Cryptocurrency Enforcement Team NCET which was established to combat the growing illicit use of cryptocurrencies and digital assets NCET conducts and supports investigations into individuals and entities that are enabling the use of digital assets to commit and facilitate a variety of crimes with a particular focus on virtual currency exchanges mixing and tumbling services and infrastructure providers The NCET also works to set strategic priorities regarding digital asset technologies identify areas for increased investigative and prosecutorial focus and lead the Departments efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets ppCCIPSNCET Trial Attorney and EDNY Assistant US Attorney Alexander Mindlin CCIPSNCET Trial Attorney Sarah Wolfe and EDNY Assistant US Attorney Artie McConnell are prosecuting the case with substantial assistance from former NCET Trial Attorneys Scott Meisler and Matthew BlackwoodppThe Justice Departments Office of International Affairs and the FBIs Legal Attaché in France provided critical assistance in the case with support from the Departments Cyber Operations International Liaison The Department also thanks the Cyber Division of the Paris Prosecution Office and Frances Gendarmerie Nationale Cyberspace Command Cyber Crime Investigation Unit C3NppA federal grand jury in San Francisco returned an indictment on Tuesday charging two individuals with a campaign to hack into computer networks in the United States the United KingdomppA Russian national pleaded guilty today to his role in developing and deploying the malicious software known as Trickbot which was used to launch cyberattacks against American hospitals and otherppThe Justice Department announced today the seizure of nearly 9 million worth of Tether a cryptocurrency pegged to the US dollar These seized funds were traced to cryptocurrency addresses allegedlyppOffice of Public Affairs
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ppArchived NewsppPara Notícias en EspañolppThe founder and majority owner of Bitzlato Ltd Bitzlato a cryptocurrency exchange that served as a primary conduit for dark market purchasers and sellers as well as a safe haven for illicit transactions by ransomware criminals pleaded guilty today to operating a money transmitting business that transmitted illicit fundsppIn connection with his plea agreement Anatoly Legkodymov aka Anatolii Legkodymov Gandalf and Tolik 41 who is a Russian national and resided in Shenzen Peoples Republic of China agreed to dissolve Bitzlato and to release any claim over approximately 23 million in seized assets of BitzlatoppAs alleged Bitzlato advertised a safe haven for fraudsters thieves and other criminals to launder illicit proceeds but their business model didnt account for federal law enforcement said Deputy Attorney General Lisa O Monaco We are dismantling and disrupting the cryptocrime ecosystem using all tools available including criminal prosecution In January the Department and our partners took down Bitzlatos infrastructure and seized its cryptocurrency Todays conviction of Bitzlatos founder is the latest product of our effortsppLegkodymov operated a cryptocurrency exchange that was open for business to money launderers and other criminals said Acting Assistant Attorney General Nicole M Argentieri of the Justice Departments Criminal Division He profited from catering to criminals and now he must pay the price Transacting in cryptocurrency does not put you beyond the reach of the law Legkdoymovs plea demonstrates the consequences for those who would offer a safe haven for criminals and their illgotten gainsppAccording to court documents Bitzlato a Hong Kongregistered cryptocurrency exchange that operated globally marketed itself as requiring minimal identification from its users specifying that neither selfies nor passports are required On occasions when Bitzlato did direct users to submit identifying information it repeatedly allowed them to openly provide information belonging to straw man registrants As a result of these deficient knowyourcustomer KYC procedures Bitzlato allegedly became a haven for criminal proceeds and funds intended for use in criminal activityppLegkodymovs guilty plea today confirms that he was well aware that Bitzlato his cryptocurrency exchange was being used like an open turnstile by criminals eager to take advantage of his lax controls over illicit money transactions said US Attorney Breon Peace for the Eastern District of New York The defendant may have thought he was operating from a safe haven overseas for his No Questions Asked clearinghouse but this prosecution and conviction demonstrate otherwiseppBitzlatos largest counterparty in cryptocurrency transactions was Hydra Market an online marketplace for narcotics stolen financial information fraudulent identification documents and money laundering services that was the largest and longestrunning darknet market in the world Hydra Market users exchanged more than 700 million worth of cryptocurrency with Bitzlato either directly or through intermediaries until Hydra Market was shut down because of seizures made by US and German law enforcement in April 2022 Bitzlato also received millions of dollars worth of ransomware proceeds Legkodymov was repeatedly advised that cryptocurrency routed through Bitzlato represented the proceeds of crime andor was intended for use in illicit transactionsppLegkodymov faces a maximum penalty of five years in prison A sentencing date has not yet been set A federal judge will determine any sentence after considering the US Sentencing Guidelines and other statutory factorsppThe FBI is investigating the caseppThe investigation was jointly prosecuted by the US Attorneys Office for the Eastern District of New York EDNY and the Criminal Divisions Computer Crime and Intellectual Property Section CCIPS and National Cryptocurrency Enforcement Team NCET which was established to combat the growing illicit use of cryptocurrencies and digital assets NCET conducts and supports investigations into individuals and entities that are enabling the use of digital assets to commit and facilitate a variety of crimes with a particular focus on virtual currency exchanges mixing and tumbling services and infrastructure providers The NCET also works to set strategic priorities regarding digital asset technologies identify areas for increased investigative and prosecutorial focus and lead the Departments efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets ppCCIPSNCET Trial Attorney and EDNY Assistant US Attorney Alexander Mindlin CCIPSNCET Trial Attorney Sarah Wolfe and EDNY Assistant US Attorney Artie McConnell are prosecuting the case with substantial assistance from former NCET Trial Attorneys Scott Meisler and Matthew BlackwoodppThe Justice Departments Office of International Affairs and the FBIs Legal Attaché in France provided critical assistance in the case with support from the Departments Cyber Operations International Liaison The Department also thanks the Cyber Division of the Paris Prosecution Office and Frances Gendarmerie Nationale Cyberspace Command Cyber Crime Investigation Unit C3NppA federal grand jury in San Francisco returned an indictment on Tuesday charging two individuals with a campaign to hack into computer networks in the United States the United KingdomppA Russian national pleaded guilty today to his role in developing and deploying the malicious software known as Trickbot which was used to launch cyberattacks against American hospitals and otherppThe Justice Department announced today the seizure of nearly 9 million worth of Tether a cryptocurrency pegged to the US dollar These seized funds were traced to cryptocurrency addresses allegedlyppOffice of Public Affairs
US Department of Justice
950 Pennsylvania Avenue NW
Washington DC 20530ppOffice of Public Affairs Direct Line
2025142007ppDepartment of Justice Main Switchboard
2025142000ppSignup for Email Updates
Social MediappppHave a question about Government Servicesp
