Russian Man Suspected to be Behind Two Major Money Launderings

Russian Man Suspected to be Behind Two Major Money Launderings

It has been revealed by various sources that a Russian man who has been arrested by the Greek authorities for laundering $4 billion using Bitcoin exchange BTC-E is also the main suspect in the Mt. Gox theft that caused a loss of $2.21 billion.

An announcement is planned to be delivered soon regarding the link between BTC-E and Mt. Gox, said WizSecurity, the original source referred by Kyle Torpey, Bitcoin analyst Tuur Demeester and Coindesk.

WizSecurity said in an official announcement that Vinnik is the primary suspect for involvement in the MT. Gox theft. This came as a result of years’ worth of work, and the company is sure that other independent investigators have come to the same findings on their own. Everyone involved in the case managed to stay quiet and only give information they have found to the law-enforcement officials in order to heighten the chances of arrest being made.

Over the past few years, WizSecurity has been using various tools to trace clustered addresses, and with that, they traced Mt. Gox transactions to the online identity WME, although BTC-E has publicly vouched for it the past. There are also suspicions of WME being involved in the Bitcoinica hack that led to a big loss of Bitcoin. Alexander Vinnik had been traced down by WizSecurity as the main actor behind the Mt. Gox heist as well as WME.

In case that BTC-E did, in fact, hack into Mt. Gox and stole billions of dollars worth of Bitcoin from their users, this will finally clear the name of Mt. Gox former CEO, Mark Karpeles, who has been investigated by the Japanese law enforcement on the case to this day.

Since the downfall of Mt. Gox in 2014, its former CEO, Mark Karpeles has been investigated by Japanese authorities because of his involvement with the company and suspicion that he could have manipulated user funds for a long time. On July 11, Karpeles pleaded not guilty to the embezzlement and manipulation of data.

The swore to God in front of a three-judge panel in the Japanese court of being innocent.

At the time of writing, Alexander Vinnik is being investigated for utilizing BTC-E, which is the oldest running Bitcoin exchange on the market, and processing money used to fund illegal activities.

The Greek police, which was the one that arrested Vinnik, stated that the 38-year-old Russian has been running a criminal organization since 2011, an organization that manages one of the most important websites of electronic crime in the world.

Vinnik was arrested on a U.S. warrant according to sources including Reuters and it is expected that he will be extradited to the U.S. for a hearing in the upcoming weeks.