Bitzlato Ex-CEO Seeks Trump Pardon Amid $700M Darknet Ties

Anatoly Legkodymov, the former CEO of the cryptocurrency exchange Bitzlato, has formally requested a presidential pardon from former U.S. President Donald Trump. Legkodymov, a Russian national, was detained in Miami in 2023 and charged with operating an unlicensed money-transmitting service. The U.S. Department of Justice alleged that Bitzlato's inadequate customer identification protocols facilitated the movement of illicit funds, with the exchange's largest client being Hydra, a Russia-based darknet marketplace. Cryptocurrency transactions between Bitzlato and Hydra reportedly amounted to $700 million.

Legkodymov has completed an 18-month sentence in the United States but now faces potential extradition to France, where authorities are pursuing additional charges that could result in a prison term of up to 20 years. As a result, U.S. law enforcement is currently holding him in custody. Legkodymov's legal counsel, Ivan Melnikov, has defended his client, characterizing Bitzlato as merely a "transactional bulletin board" and arguing that Legkodymov is a scapegoat in what he described as a politically motivated attack on Russia’s digital asset industry and its developers. Melnikov further stated that the pardon request is driven by hopes for the U.S. to adopt a more balanced approach towards digital finance and to reinitiate dialogue between Washington and Moscow.

Russian human rights groups have called his prosecution politically motivated, portraying him as a scapegoat in the broader crackdown on crypto and Russian tech entrepreneurs. “This is a test of whether the U.S. will take a more balanced stance on digital finance,” said Ivan Melnikov, a rights advocate involved with the case.

Legkodymov's appeal to Trump comes on the heels of the granting clemency to Ross Ulbricht, the operator of Silk Road, an infamous darknet marketplace. Ulbricht, who was serving a life sentence, was pardoned this past January after serving 11 years in prison. Legkodymov appears to be leveraging this precedent in his bid for leniency. The case underscores the increasingly strained relationships between Russian digital asset entrepreneurs and Western judicial systems, with geopolitical considerations likely influencing legal outcomes.

Legkodymov joins a growing list of crypto figures seeking clemency from Trump. Since taking office in January, the president has pardoned Ross Ulbricht of Silk Road fame and several BitMEX executives. Former Binance CEO CZ and even Sam Bankman-Fried are also said to be pursuing similar appeals.