Russian Founder of Bitzlato Sentenced for Unlicensed Cryptocurrency Operations
Anatoly Legkodymov, the Russian founder of Bitzlato cryptocurrency exchange, was sentenced to the 18 months he had already served for running an unlicensed money-transmitting business that facilitated over $700 million in illegal gambling and drug transactions. Legkodymov, who was arrested in January 2023, pled guilty in December to operating Bitzlato as a conduit for dark web transactions, including those of Hydra Market, a drug bazaar shut down in 2022.
US District Judge Eric Vitaliano in Brooklyn, New York, issued the time-served sentence on Thursday. Legkodymov admitted to knowing for years about the illicit activities on Bitzlato but continued to let the exchange function. Brooklyn US Attorney Breon Peace’s office prosecuted the case, arguing that Legkodymov deserved at least four years in prison due to his ongoing support of criminal activities despite numerous warnings.
Legkodymov, who resided in Russia and Shenzhen, was detained in the US due to being considered a flight risk. His sentencing falls within a larger scale initiative by the US Justice Department to combat the criminal use of cryptocurrency, particularly through the National Cryptocurrency Enforcement Team.
This effort notably saw Binance Holdings Ltd. and CEO Changpeng Zhao plead guilty to anti-money laundering and US sanctions violations, resulting in a comprehensive settlement that allowed the cryptocurrency exchange to continue its operations.
The case is US v. Legkodymov, 23-cr-496, US District Court, Eastern District of New York (Brooklyn).
For more detailed coverage, visit bloomberg.com.
Original Story https://www.livemint.com/news/crypto-exchange-head-gets-no-more-jail-time-in-700-million-scam-11721337368916.html
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