Just In: Bitzlato Co-Founder To Plead Guilty In U.S. Court

Republished By Plato

Followers: 0

Anatoly Legkodymov, co-founder of the Hong Kong-registered virtual currency exchange Bitzlato, is poised to enter a guilty plea in a U.S. court. This Russian national faces accusations from U.S. authorities for his role in processing about $700 million in illicit funds. Scheduled to appear before U.S. District Judge Eric Vitaliano, Legkodymov’s court appearance in Brooklyn is set for 2:30 p.m. EST for a “criminal cause for pleading.”

Background of Bitzlato Co-Founder’s Case

Arrested in Miami on January 17, Legkodymov has been in custody at the Metropolitan Detention Center in Brooklyn since his apprehension. U.S. prosecutors assert that Legkodymov, 41, managed Bitzlato as an unlicensed money exchange business. His operations allegedly involved substantial transactions with Hydra Market, a platform known for facilitating drug trades, distribution of stolen financial information, and money laundering services.

International Enforcement Action

Following these events, Bitzlato’s website was seized by French authorities, marking a coordinated international law enforcement action. This crackdown is part of a broader effort by U.S. and German law enforcement agencies, which successfully shut down Hydra Market in April 2022. These actions represent a concerted global effort to curb illicit financial activities in the cryptocurrency markets.

The anticipated guilty plea of Legkodymov is a critical milestone in U.S. law enforcement’s ongoing efforts to combat fraud and illegal finance within the cryptocurrency sector. This development follows the conviction of FTX founder Sam Bankman-Fried for misappropriation of funds and the hefty $4.3 billion settlement paid by Binance. Binance CEO Changpeng Zhao also pleaded guilty to violating U.S. anti-money laundering laws. Notably, U.S. authorities identified Binance as one of Bitzlato’s top counterparties.

Adding a layer of international complexity, Russia’s embassy in Washington has been advocating for Legkodymov’s release. This request came after a visit to the detainee by Ambassador Anatoly Antonov. The case has further strained U.S.-Russia relations, already tense due to Russia’s refusal to release detained Americans, including Wall Street Journal reporter Evan Gershkovich.

<!–

Top Crypto Marketing Firms / Agencies 2023; Here’s Best Picks [Updated]

Top 10 Web3 Games To Explore In 2023; Here List

–>

<!–

–>

Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

<!–

Crypto Stories

View all