DoJ Arrests Founder of Crypto Exchange Bitzlato for Money Laundering

The US Department of Justice (DoJ) has announced it has arrested Anatoly Legkodymov, the founder of crypto exchange Bitzlato, for reportedly laundering $700 million related to the closed darknet marketplace Hydra.

The FBI detained the Russian citizen on January 17 as part of the case.

The Ministry of Justice is investigating the case in cooperation with law enforcement officers of France. Other participants in the case include Belgian and Dutch colleagues, as well as Interpol.

Legkodymov reportedly ran a money transfer business that “transferred illegal funds and violated US regulatory requirements, including anti-money laundering regulations.”

According to the statement:

“Hydra Market users exchanged more than $700 million in cryptocurrency with Bitzlato directly or through intermediaries until the marketplace was closed by US and German law enforcement in April 2022. Bitzlato also received over $15 million in ransomware revenue.”