The U.S. Department of Justice (DOJ) has unveiled charges against a Belarusian and Cypriot national, Aliaksandr Klimenka, 42, for his involvement in a global money laundering conspiracy and operating BTC-e, an unlicensed digital currency exchange. Klimenka was arrested in Latvia on December and made his initial court appearance in San Francisco. If convicted, Klimenka faces up to 25 years in prison.
Aliaksandr Klimenka is accused of controlling BTC-e, alongside Alexander Vinnik and others, from 2011 until its closure in July 2017. The platform is alleged to have been a hub for cybercrime and money laundering, facilitating anonymous bitcoin transactions for a customer base deeply entangled in criminal activities. According to the indictment, BTC-e played a pivotal role in laundering proceeds from a plethora of crimes, including computer hacking, fraud, identity theft, tax refund fraud schemes, public corruption, and drug trafficking. Additionally, Klimenka is said to have managed Soft-FX, a technology services company, and FX Open, a financial firm, further entrenching his involvement in the cybercrime ecosystem.
The indictment highlights BTC-e‘s failure to adhere to U.S. legal standards, operating without registration as a money services business, lacking any form of anti-money laundering procedures, and neglecting the necessary “know your customer” (KYC) protocols. This lack of regulatory compliance underscores the platform’s role in the broader scheme of global cybercrime.
Klimenka was arrested in Latvia on December 21, 2023, at the behest of the U.S.He made his initial court appearance in San Francisco, where he is currently being held pending trial. If convicted, Klimenka faces up to 25 years in prison, a testament to the severity of the charges against him.
The collaborative effort between the Justice Department’s Office of International Affairs, Latvian authorities, and various U.S. investigative bodies illustrates the global stance against the use of digital currencies for criminal purposes. With this indictment, the U.S. government signals its unwavering dedication to disrupting international cybercrime networks and safeguarding the integrity of the digital economy.
