Russian Bitcoin King Freed in U.S.-Russia Prisoner Swap

Alexander Vinnik, the jailed former operator of the once-popular bitcoin exchange BTC-e, has been released from U.S. custody as part of a prisoner exchange with Russia. Vinnik, 44, is being swapped with jailed American teacher Marc Fogel, who returned to the U.S. on the night of the surprise breakthrough in negotiations with the Kremlin.

BTC-e, which operated between 2011 and 2017, was one of the early exchanges that popularized the buying and selling of bitcoin. It had over 1 million customers and facilitated over $9 billion in transactions during its operation. However, its popularity also attracted a thriving criminal underground that relied on the exchange to move in and out of ill-gotten bitcoin proceeds.

U.S. prosecutors accused Vinnik of operating BTC-e "with the intent to promote" drug dealers, money launderers, and other cybercriminals. They alleged that his actions resulted in a loss of $121 million. Vinnik was arrested in Greece in 2017 and later extradited to the U.S. He pled guilty to money laundering conspiracy in 2024 and faced a maximum of 20 years in prison.

Vinnik's lawyers had previously lobbied for his inclusion in other high-profile U.S.-Russia prisoner exchanges, such as last year's deal involving formerly jailed Wall Street Journal reporter Evan Gershkovich. However, this is the first time that Vinnik has been included in a prisoner swap.