Former chief of Russia's Wex crypto exchange arrested in Poland

Former chief of Russia's Wex crypto exchange arrested in Poland

BBC Russia has reported that Dmitry Vasiliev, the former chief of Russian cryptocurrency exchange Wex, has been arrested in Warsaw, Poland.

Wex, which was previously known as BTC-e, was a well-known "dark" exchange in the early days of the cryptocurrency industry. It is alleged to have laundered funds for numerous high-profile crypto hacks, including the notorious Mt. Gox incident.

Our top trading bots

Although Vasiliev is regarded as innocent within Poland's jurisdiction, other countries such as Kazakhstan have an open fraud case against the elusive figure and as such, have reportedly engaged in discussions surrounding the possibility of extradition.

It is understood that Vasiliev was detained on August 11 by Polish authorities, but the news was only uncovered by the Polish newspaper, Wyborcza, on Sept. 17.

Vasiliev allegedly facilitated trades for Chinese investors as an employee for BTC-e up until its closure in the summer 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 subject of an investigation by United States authorities.

A few months after Vinnik's arrest, Vasiliev emerged as director of the rebranded exchange, Wex, which went on to cement its place in the list of Top-10 exchanges, with a daily trading turnover of $80 million, by the calendar year end.

But just over a year later, Binance blacklisted Wex for alleged money laundering practices — a decision that would eventually result in the demise of the exchange.

In 2019, Vasiliev was arrested by Italian authorities, but was soon released after it was revealed that mistakes were made in the extradition request. 

Related: Data center operators have ‘no problem’ with new Russian crypto crackdown

Recently, the Bank of Russia began collaborating with local banks to suspend its citizens payments to crypto exchanges, citing customer protection from “emotional” purchases as the reason for enforced intervention.

Continue reading on Cointelegraph
UK’s Ex-Chancellor Philip Hammond to advise crypto firm Copper
Former Chancellor of the Exchequer in the United Kingdom, Lord Philip Hammond, has joined cryptocurrency custodial group Copper as a senior advisor with...
New Australian crypto legislation likely in 2022, Senator Bragg tells NFT Fest
Liberal Senator Andrew Bragg has told a local industry event that Australia’s digital asset plan to create cryptocurrency-related legislation is “coming”...
The ongoing NFT boom: Can supply of nonfungibles outweigh demand?
Nonfungible tokens, or NFTs, have taken the cryptocurrency sector by storm in 2021. The growing interest in these digital collectibles resulted in record-breaking...
Despite Bitcoin price crash, BTC is the internet of value transfer: Novogratz
The crypto market is back to major price swings followed by a Bitcoin (BTC) price crash on Tuesday, the day the largest cryptocurrency became legal tender...
Price analysis 8/23: BTC, ETH, ADA, BNB, XRP, DOGE, DOT, SOL, UNI, BCH
Bitcoin (BTC) rallied above the psychological hurdle at $50,000 today for the first time since May 15. The sharp rally of the past few days has turned the...
Digital currency may be an answer to help the unbanked, Sen. Warren says
Senator and former United States presidential candidate Elizabeth Warren believes that the digital asset industry may be a tool to tackle some challenges...
FXT token taps into Binance Smart Chain following ERC-20 success
Crypto trading platform FXT announced the launch of a BEP-20 token after its ERC-20 token witnessed an impressive 1,500% growth since its launch back in...
Mexico may not be following El Salvador's example on Bitcoin... yet
Authorities behind financial regulation in Mexico have warned against financial institutions handling cryptocurrencies, saying digital assets are still...
With crypto mining banned in Iran, local authorities seize 7K rigs
Iranian provincial police are continuing their crackdown on crypto miners big and small, with news surfacing that they have confiscated more than 7,000...
Mirror Protocol silently rallies 30% overnight despite crypto market slump
Mirror Protocol (MIR) emerged as one of the best performing tokens in the cryptocurrency market on May 17, even as its top trading rivals Bitcoin (BTC)...
Don’t blame crypto for ransomware
Recently, gas has been a hot topic in the news. In the crypto media, it’s been about Ethereum miner’s fees. In the mainstream media, it’s been about good...
Almost all major Bitcoin mining pools now signaling for Taproot activation
Disclaimer: This article has been updated to reflect that BTC.Top has begun signaling for Taproot activation.The top-10 Bitcoin (BTC) mining pools by hash...
Biden’s capital gains tax plan to pull crypto down to earth from the moon?
There are often multiple causes for an asset’s sharp decline, but Bitcoin’s (BTC) 10% “nosedive,” which took place on April 22, may be blamed on the Biden...
Cointelegraph Consulting: Hype for NFTs is real, but what about transaction volume?
Covalent’s latest findings in Cointelegraph Consulting’s biweekly newsletter indicate that the nonfungible token, or NFT, market has whales of its own.The...
The US Judge Defines Cryptos As Commodities, Backing Up CFTC Decision
One of the US rulers has finally explained what cyber money is. Neither are they fiat, nor assets, following the decision of the American, New York region,...