Prosecutors allege Anatoly Legkodymov’s company became a ‘safe haven’ for proceeds of criminal activity
Photograph: Jonathan Raa/NurPhoto/Rex/ShutterstockPhotograph: Jonathan Raa/NurPhoto/Rex/ShutterstockA Russian national who founded a cryptocurrency exchange that the justice department says became a haven for the proceeds of criminal activity has been arrested, federal officials said on Wednesday.and was due in court on a charge of conducting an unlicensed money-transmitting business.
Prosecutors allege that Legkodymov’s cryptocurrency exchange, Bitzlato Ltd, of which he served as majority owner, did not implement required anti-money laundering safeguards and required only minimal identification from its users, even permitting them to supply information belonging to “straw man registrants”, people serving as cover for the users.
“The result was that Bitzlato became a safe haven for criminals, like drug dealers and ransomware groups,” said Breon Peace, the US attorney in Brooklyn, where the case was filed. “They knew that when the police traced their funds to Bitzlato, Bitzlato would not be able to turn over its users’ true identities.
“Operating offshore or moving your servers out of the continental US will not shield you,” deputy attorney general Lisa Monaco said at a Wednesday news conference. “And 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.
The treasury department worked with French authorities to identify the alleged criminal activities by Bitzlato, which US officials said was a sign of the global cooperation to purge bad actors from cryptocurrency markets.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Prosecutors won’t seek death penalty for accused Texas Walmart shooterDallas-area native is charged with hate crimes and capital murder for killing 23 people in a racist shooting in El Paso in 2019
Read more »
Far-right activists go on trial accused of plot to assassinate MacronAlleged plotters planned to attack president during visit to north-east France in 2018, say prosecutors
Read more »
High-ranking former member of Russian private military contractor Wagner Group seeks asylum in NorwayThe Norwegian Directorate of Immigration confirms former high-ranking Wagner Group member Andrey Medvedev is seeking shelter in Norway.
Read more »
Ukrainian ambassador calls on organisers to take action after Russian flag displayed at Aus OpenA Russian flag was hanging behind fans during a match between Ukraine's Kateryna Baindl and Russian Kamilla Rakhimova on court 14 on day one of the Australian Open.
Read more »
Russian flags banned at Australian Open following criticism from Ukrainian ambassadorMove comes after fan displays Russian flag during Kamilla Rakhimova’s first-round match against Ukraine’s Kateryna Baindl on Monday
Read more »
Russian flag banned at Australian Open after outcry from Ukrainian ambassadorAustralian Open officials have banned the Russian flags from the Grand Slam after public outcry over the display of the ensign on the first day of the tournament.
Read more »