US arrests Russian founder of Hong Kong-registered cryptocurrency exchange Bitzlato
- Anatoly Legkodymov, who lives in Shenzhen, China was arrested in Miami for allegedly using his business to process US$700 million in illicit funds
- Prosecutors say Bizlato catered to ‘known crooks’ via Hydra Market, described as an illicit online marketplace for drugs, stolen info and money laundering
US authorities said they have arrested the majority shareholder and co-founder of Hong Kong-registered virtual currency exchange Bitzlato Ltd for allegedly processing US$700 million in illicit funds.
Anatoly Legkodymov, a Russian national living in China, was arrested in Miami on Tuesday on charges that he operated the exchange as an unlicensed money exchange business that “in his own words, catered to ‘known crooks’”, a top Justice Department official said.
Prosecutors said Bitzlato exchanged more than US$700 million in cryptocurrency with Hydra Market, which they described as an illicit online marketplace for narcotics, stolen financial information, fraudulent identification documents and money laundering services that US and German law enforcement shut down in April 2022.
“Whether you break our laws from China or Europe or abuse our financial system from a tropical island – you can expect to answer for your crimes inside a United States courtroom,” Deputy Attorney General Lisa Monaco told reporters at a news conference at the Justice Department on Wednesday.
Bitzlato also received more than US$15 million in ransomware proceeds, prosecutors said.
Authorities described Legkodymov as the cryptocurrency exchange’s co-founder, saying the 40-year-old Russian helped run the company from the Chinese city of Shenzhen.
