Title: Belarusian National Charged with Money Laundering and Operating an Unlicensed Crypto Exchange in the US
Alleged Operator of Notorious Crypto Exchange BTC-e Faces US Charges
A Belarusian national, Aliaksandr Klimenka, has been charged in the United States for operating a cryptocurrency exchange involved in money laundering conspiracies and lacking essential anti-money laundering (AML) processes.
Control of the Notorious BTC-e Exchange
Klimenka is one of the individuals accused of controlling the notorious digital currency exchange BTC-e, which reportedly operated without proper registration and facilitated illicit transactions.
Criminal Enterprise Spanning a Decade
The indictment, unveiled by the US Department of Justice, spans from 2011 to July 2017:
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Cybercrime: The criminal enterprise involved in cybercrime, online money laundering, and various other transactions.
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Anonymous Bitcoin Trading: The exchange allegedly allowed anonymous Bitcoin trading, attracting a significant user base engaged in criminal activities.
Range of Criminal Activities
The exchange was reportedly involved in the following criminal activities:
- Computer Hacking: Hacking to steal Bitcoin and other cryptocurrency.
- Identity Theft: Stealing victims’ identities to buy and sell cryptocurrencies.
- Ransomware Scams: Facilitating ransomware attacks and collecting payments in cryptocurrencies.
- Drug Trafficking: Enabling transactions related to drug trafficking.
- Other Illicit Transactions: Conducting transactions linked to other criminal activities.
Regulatory Noncompliance
Despite conducting substantial business in the US, the exchange:
- Failed to Register: Reportedly failed to register as a money services business.
- Lacked a KYC Verification System: Failed to implement a Know Your Customer verification system.
- Absence of AML Program: Lacked an anti-money laundering program, as required by federal law.
Arrest and Penalties
- Arrest in Latvia: Klimenka, aged 42, was arrested on December 21, 2023, in Latvia following a request from the US.
- Maximum Penalty: If convicted, he faces a maximum penalty of 25 years in prison.
Collaborative Efforts and International Cooperation
The investigation was a collaborative effort among various investigative agencies:
- US Secret Service, Federal Bureau of Investigation, IRS Criminal Investigation, and Homeland Security Investigations
- National Cryptocurrency Enforcement Team (NCET) was also involved in the investigation.
The arrest was a result of international cooperation, with the Justice Department’s Office of International Affairs collaborating with the Latvian government.
The establishment of the NCET underscores ongoing efforts against the illicit use of cryptocurrencies and digital assets, and the US authorities emphasize the importance of international collaborations in combating cryptocurrency-related offenses.