US Frees Russian Crypto Founder in Prisoner Swap

US Releases Russian Crypto Exchange BTC-e Founder in Prisoner Swap Deal

The US has released Alexander Vinnik, the founder of the Russian crypto exchange BTC-e, in a prisoner swap deal with Russia. Vinnik was arrested in 2017 and faced charges of money laundering and other crimes. He was extradited to the US in 2022 and later pleaded guilty to new charges.

The swap deal saw Vinnik traded for American school teacher Marc Fogel, who was arrested in Russia in 2022 for attempting to enter the country with 17 grams of marijuana. Fogel was sentenced to 14 years in prison but was released following the swap deal.

Vinnik's life has been marked by constant legal battles since the closure of BTC-e in 2017. After his arrest in Greece, he was extradited to France and then to the US. In addition to his initial money laundering charges, the US added new charges in 2024, to which Vinnik pleaded guilty.

Two White House officials claimed that the swap deal was a fair one, stating that Vinnik was currently in custody in northern California, awaiting transportation back to Russia. However, while the deal may appear to be a continuation of Trump's general campaign of crypto clemency, Vinnik's situation is far more serious than that of Ross Ulbricht, the founder of the Silk Road, who was pardoned by Trump last month.

Vinnik may prefer conditions in his home country, but he is unlikely to become a free man any time soon. The Russian government has requested his extradition since at least 2018, and he confessed to Russian law enforcement that he committed major cyber fraud at BTC-e, with damages amounting to approximately $14.6 million.