Anatoly Legkodymov, a Russian entrepreneur also the co-founder of the crypto exchange Bitzlato pleaded guilty to operating a money transfer business that accepted illicit funds. As part of his plea agreement, Legkodymov agreed to dissolve Hong Kong-based Bitzlato and renounce any claim to $23 million in seized assets.
Anatoly was prosecuted and detained by the US government early this year. At that time, the Department of the Treasury and the DOJ accused him of processing about $700 million in illicit funds. The Financial Crimes Enforcement Network (FinCEN) has also identified Bitzlato as a primary money laundering concern, which is often the first step to remove a business from the global financial system During this period, the platform infrastructure shut down in France for allegedly laundering criminal assets.
Legkodymov recently appeared in New York Eastern District Court in Brooklyn before Judge Eric Vitaliano and admitted that Bitzlato conducted over $700 million in illicit cryptocurrency exchanges with users of Hydra Market, the largest darknet market specializing in stealing financial information, fraudulent documents, and providing money laundering services. Hydra Market was dismantled in April 2022.
US Deputy Attorney General Lisa Monaco called Bitzlato as a safe haven for fraudsters, thieves, and other criminals. Legkodymov could face up to 5 years in prison. Another co-founder of Bitzlato, Anton Shkurenk, has hinted at the possibility of restarting the platform, although its website has shown a notice stating that the service has been seized by the French authorities since December 6.