BTC-e was Fined $110 Million
The US government has unsealed an indictment against BTC-e and one of its alleged operators, levying a $110m fine for violations allegedly committed by the long-running bitcoin exchange.
In the 21-count indictment released earlier this evening, the Department of Justice alleged that BTC-e and Alexander Vinnik, the Russian national who was arrested earlier today in Greece and later linked to the long-running exchange, committed a laundry list of crimes throughout the exchange's six-year history.
Federal prosecutors allege that BTC-e functioned as a clearing house for illicit funds sourced from "computer intrusions and hacking incidents, ransomware scams, identity theft schemes, corrupt public officials, and narcotics distribution rings."
Vinnik was charged with 17 counts of money laundering and two counts of engaging in unlawful monetary transactions. Both BTC-e (by way of an alleged holding company named Canton Business Corporation) and Vinnik were also charged with one count of operating an unlawful money services business and one count of conspiracy to commit money laundering.
Prosecutors further alleged that Vinnik "received funds from the infamous computer intrusion or “hack” of Mt. Gox" – echoing claims released earlier today by the independent research group WizSec, which has investigated the theft of funds from the now-defunct Japan-based bitcoin exchange.
According to the Department of Justice, the Financial Crimes Enforcement Network (FinCEN) assessed a $110m civil penalty against BTC-e, as well as a $12m penalty against Vinnik.
If convicted, Vinnik faces as many as 55 years in prison.