Anatoly Legkodymov confessed to running a $2 billion laundering center.
Anatoly Legkodymov, owner of the Bitzlato cryptocurrency exchange, pleaded guilty to managing Bitzlato, which helped cybercriminals and drug traffickers launder more than $700 million. This is reported by the US Department of Justice.
According to the investigation, Legkodymov, also known under the pseudonyms "Gandalf" and "Tolik", deliberately created favorable conditions for laundering criminal funds. The Bitzlato exchange practically did not require user identification, which allowed criminals to freely exchange and withdraw illegally obtained money.
According to a report by the analytical company Chainalysis, from 2019 to 2021, more than $2 billion in cryptocurrency passed through Bitzlato, and almost half of it was related to illegal activities. The exchange received more than $224.5 million from darknet markets alone, and about $9 million from ransomware attacks.
Investigators paid particular attention to Bitzlato's connections with the largest darknet market Hydra, which was closed in April 2022. Through Bitzlato, Hydra users have exchanged over $700 million worth of cryptocurrencies.
The US Department of Justice claims that Legkodymov repeatedly received warnings that the cryptocurrency passing through Bitzlato is the income from criminal activities or is intended for illegal transactions.
Stub on the Bitzlato website
In January 2023, the US authorities, together with their European counterparts, liquidated the Bitzlato infrastructure and confiscated its domains. Legkodymov, who has been in custody in Brooklyn, USA since his arrest in January 2023, can now receive up to 5 years in prison.
Anatoly Legkodymov, owner of the Bitzlato cryptocurrency exchange, pleaded guilty to managing Bitzlato, which helped cybercriminals and drug traffickers launder more than $700 million. This is reported by the US Department of Justice.
According to the investigation, Legkodymov, also known under the pseudonyms "Gandalf" and "Tolik", deliberately created favorable conditions for laundering criminal funds. The Bitzlato exchange practically did not require user identification, which allowed criminals to freely exchange and withdraw illegally obtained money.
According to a report by the analytical company Chainalysis, from 2019 to 2021, more than $2 billion in cryptocurrency passed through Bitzlato, and almost half of it was related to illegal activities. The exchange received more than $224.5 million from darknet markets alone, and about $9 million from ransomware attacks.
Investigators paid particular attention to Bitzlato's connections with the largest darknet market Hydra, which was closed in April 2022. Through Bitzlato, Hydra users have exchanged over $700 million worth of cryptocurrencies.
The US Department of Justice claims that Legkodymov repeatedly received warnings that the cryptocurrency passing through Bitzlato is the income from criminal activities or is intended for illegal transactions.
Stub on the Bitzlato website
In January 2023, the US authorities, together with their European counterparts, liquidated the Bitzlato infrastructure and confiscated its domains. Legkodymov, who has been in custody in Brooklyn, USA since his arrest in January 2023, can now receive up to 5 years in prison.
