BBC Russia has reported that Dmitry Vasiliev, the previous chief of Russian cryptocurrency change Wex, has been arrested in Warsaw, Poland.
Wex, which was beforehand generally known as BTC-e, was a widely known “darkish” change within the early days of the cryptocurrency trade. It’s alleged to have laundered funds for quite a few high-profile crypto hacks, together with the infamous Mt. Gox incident.
Though Vasiliev is thought to be harmless inside Poland’s jurisdiction, different international locations equivalent to Kazakhstan have an open fraud case in opposition to the elusive determine and as such, have reportedly engaged in discussions surrounding the opportunity of extradition.
It’s understood that Vasiliev was detained on August 11 by Polish authorities, however the information was solely uncovered by the Polish newspaper, Wyborcza, on Sept. 17.
Vasiliev allegedly facilitated trades for Chinese language buyers as an worker for BTC-e up till its closure in the summertime of 2017. Alexander Vinnik, the alleged head of BTC-e, was charged with laundering over $4B in Bitcoin over six years. He was subsequently arrested in Greece and was the topic of an investigation by United States authorities.
Just a few months after Vinnik’s arrest, Vasiliev emerged as director of the rebranded change, Wex, which went on to cement its place within the listing of High-10 exchanges, with a each day buying and selling turnover of $80 million, by the calendar 12 months finish.
However simply over a 12 months later, Binance blacklisted Wex for alleged money laundering practices — a call that might ultimately end result within the demise of the change.
In 2019, Vasiliev was arrested by Italian authorities, however was quickly launched after it was revealed that errors have been made within the extradition request.
Not too long ago, the Financial institution of Russia started collaborating with native banks to droop its residents funds to crypto exchanges, citing buyer safety from “emotional” purchases as the rationale for enforced intervention.