Security News > 2023 > December > Russian pleads guilty to running crypto-exchange used by ransomware gangs

Russian national Anatoly Legkodymov pleaded guilty to operating the Bitzlato cryptocurrency exchange that helped ransomware gangs and other cybercriminals launder over $700 million.

As a Bitzlato co-founder and principal stakeholder, Legkodymov has agreed to disband the cryptocurrency exchange and relinquish any rights to approximately $23 million in seized assets, as outlined in the plea agreement.

The report also highlights that the crypto exchange received funds amounting to $206 million sourced from darknet markets, $224.5 million stemming from scams, and $9 million obtained from ransomware attackers.

"Bitzlato also received millions of dollars' worth of ransomware proceeds. The defendant was repeatedly advised that cryptocurrency routed through Bitzlato represented the proceeds of crime and/or was intended for use in illicit transactions."

"Bitzlato plays a critical role in laundering Convertible Virtual Currency by facilitating illicit transactions for ransomware actors operating in Russia, including Conti, a Ransomware-as-a-Service group that has links to the Government of Russia," FinCEN said.

"Bitzlato poses a global threat by allowing Russian cybercriminals and ransomware actors to launder the proceeds of their theft," FinCEN Acting Director Himamauli Das added on Wednesday.

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https://www.bleepingcomputer.com/news/security/russian-pleads-guilty-to-running-crypto-exchange-used-by-ransomware-gangs/