BTC-e operator Vinnik freed in US-Russia swap for Fogel

Alexander Vinnik, the former operator of the crypto exchange BTC-e, is being released from U.S. custody as part of a prisoner exchange with Russia.

The exchange comes after Vinnik pleaded guilty to money laundering conspiracy in May 2024.

According to a Wall Street Journal report, the agreement involved the release of schoolteacher Marc Fogel, who was in Russian custody since 2021 for cannabis possession, and who returned to the U.S. on February 11.

In exchange, the U.S. has agreed to release Vinnik.

The Kremlin confirmed the agreement but did not initially identify Vinnik.

Vinnik's crypto exchange, BTC-e, processed over $9 billion in transactions between 2011 and 2017 and had over 1 million users.

U.S. authorities alleged that BTC-e facilitated the transfer, laundering, and storage of illicit funds for cybercriminals.

Vinnik was arrested in Greece in 2017 and extradited to the U.S. in August 2022.

He faced a maximum of 20 years in prison.

BTC-e was linked to the hack of Mt. Gox, one of the largest Bitcoin (CRYPTO:BTC) thefts at the time.

The exchange began repaying creditors for their losses in 2024.

His lawyers had reportedly been negotiating with Russian officials amid US basketball star Brittney Griner’s arrest in Russia over drug-related charges.

President Donald Trump's administration has hailed the prisoner exchange as a positive sign for diplomacy between the two countries and for possible negotiations over an end to the Ukraine war.

According to several U.S. media reports, Vinnik must forfeit $100 million of his criminal proceeds seized by the American government as part of the exchange.