Title: Belarusian and Cypriot National Charged in International Money Laundering Case Involving Unlicensed Digital Currency Exchange BTC-e
Subtitle: Justice Department Announces Arrest and Charges Against Foreign Nationals
The United States Department of Justice (DOJ) announced on February 1, 2024, the indictment of two individuals for their roles in an international money laundering conspiracy involving the unlicensed digital currency exchange BTC-e.
Charged Individuals:
- Alexey Ivanovich Milkevich, a Belarusian national
- Demetris Papadopoulos, a Cypriot national
Allegations:
Milkevich, a Belarusian national, was accused of serving as an administrator of BTC-e, while Papadopoulos acted as a money mule, converting digital currencies into fiat currencies.
Joint Investigation:
The investigation was a collaboration between:
- The US Department of Justice
- The Internal Revenue Service’s Criminal Investigation Division
- The Federal Bureau of Investigation
BTC-e and Illicit Transactions:
The BTC-e platform allegedly facilitated millions of dollars in illicit transactions, allowing criminals to bypass financial regulations and launder their funds due to the exchange’s lack of a proper license.
Evasion Techniques:
The defendants allegedly used various methods to evade detection, such as:
- Anonymizing transactions
- Using complex layering schemes
Seizure of Evidence:
Despite these efforts, investigating agencies were able to seize substantial evidence against Milkevich and Papadopoulos.
Penalties:
Milkevich faces money laundering conspiracy charges, which carry a maximum penalty of 20 years in prison and a fine up to $500,000 or twice the gross gain or loss associated with the transaction, whichever is greater.
Papadopoulos faces a maximum penalty of fifteen years in prison and a fine of up to $500,000 for serving as a money mule.
Global Efforts:
These allegations serve as a reminder of ongoing efforts to combat money laundering through digital currencies and maintain the integrity of the international financial system. The Justice Department reiterated its commitment to holding accountable individuals who use digital currencies for illegal activities.
Ongoing Investigation:
The investigation into other individuals and entities involved in money laundering through BTC-e continues. Anyone with relevant information is encouraged to contact the Federal Bureau of Investigation.