BBC Russia has reported that Dmitry Vasiliev, the previous chief of Russian cryptocurrency exchange Wex, has been arrested in Warsaw, Poland.
Wex, which was beforehand often known as BTC-e, was a well-known “dark” exchange in the early days of the cryptocurrency trade. It is alleged to have laundered funds for quite a few excessive profile crypto hacks, together with the infamous Mt. Gox incident.
Although Vasiliev is thought to be harmless inside Poland’s jurisdiction, different international locations reminiscent of Kazakhstan have an open fraud case in opposition to the elusive determine, and as such have reportedly engaged in discussions surrounding the chance of extradition to the nation.
It is known that Vasiliev was detained on the eleventh August by Polish authorities, however the information has solely immediately been uncovered by Polish newspaper Wyborcza.
Vasiliev allegedly facilitated trades for Chinese traders as an worker for BTC-e up till its closure in the summer season of 2017. Alexander Vinnik, the alleged head of BTC-e, was charged for laundering over $4B in Bitcoin over six years. He was subsequently arrested in Greece, and was the topic of an investigation by US authorities.
A couple of months after Vinnik’s arrest, Vasiliev emerged as director of the rebranded exchange, Wex, which went on to cement its place in the checklist of Top-10 exchanges, with a each day buying and selling turnover of $80 million, by the calendar 12 months finish.
But simply over a 12 months later, Binance blacklisted Wex for alleged cash laundering practises — a choice that may ultimately end result in the demise of the exchange.
In 2019, Vasiliev was arrested by Italian authorities, however was quickly launched after it was revealed errors had been made in the extradition request.
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Recently, the Bank of Russia started collaborating with native banks to droop its residents funds to crypto exchanges, citing buyer safety from “emotional” purchases as the explanation for enforced intervention.