On July 18, the U.S. District Court in Brooklyn, New York, sentenced Anatoly Legkodymov, the founder of the Bitzlato crypto exchange platform, to 18 months in prison, while counting the same period he had already spent in jail. This is reported by Bloomberg.
Legkodymov is accused of organizing an unlicensed money transfer business that processed funds from illegal gambling and drug trafficking in the amount of more than $700 million.
Since his arrest in Miami in January 2023, the businessman has been under federal arrest. He subsequently pleaded guilty to transferring and laundering criminal funds.
In addition, Legkodymov agreed to close the platform and waive any claims in the amount of about $23 million related to the seized assets of the exchanger. As part of the deal with the investigation, he filed a petition for release from custody.
Prosecutors demanded a minimum of four years in prison for the defendant, as Bitzlato continued to work even after repeated warnings that it had become a "haven for criminals" on the darknet.
In turn, the judge called the Metropolitan detention center, where Legkodymov was held, a "terrible place", which influenced the decision against extending the prison term.
Taking into account the time already served, the creator of Bitzlato may be released in the near future.
Recall that the French prosecutor's office initiated an investigation against the company in January. According to Europol, in total, Bitzlato converted assets related to criminal activity in the amount of about €1 billion ($1.08 billion). The amount includes $700 million for the Hydra darknet marketplace and $15 million for ransomware operators.
Law enforcement officers "seized" the platform's hot wallet, which contained "about 35% of users' funds in all cryptocurrencies at the time of the operation."
Bitzlato suspended operations on January 18, 2023, the day after Legkodymov's detention.
Since March 20 of the same year, users of the Bitzlato web version and application have gained access to partial withdrawal of bitcoins. However, in December, the platform suspended operations in preparation for court hearings regarding seized assets in France.
https://forklog.com/exclusive/otmytsya-posle-gryazi-komu-iz-kontragentov-bitzlato-grozyat-novye-ugolovnye-dela