BTC-e Founder Vinnik Returns to Russia in High-Profile ‘Prisoner Swap’ by Trump

Alexander Vinnik, the former operator of the once-dominant BTC-e cryptocurrency exchange, is set to be released from U.S. custody in a prisoner swap with Russia.

His name has long been tied to one of the biggest crypto scandals, with billions of dollars in transactions and allegations of money laundering. Now, after years of legal battles across multiple countries, Vinnik is finally heading back to Russia.

Here’s everything you need to know.

Understanding Trump’s Role

According to the New York Times, former President Donald Trump Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election President arranged the swap, exchanging Russian prisoner Alexander Vinnik for American teacher Marc Fogel. Vinnik was arrested in Greece in 2017 and later extradited to the U.S. and France to face fraud and money laundering charges. Before his arrest, he operated BTC-e, a crypto exchange that handled over $9 billion in transactions.

BTC-e’s Role

BTC-e was one of the first platforms to popularize Bitcoin trading, serving over 1 million customers between 2011 and 2017. However, U.S. prosecutors accused Vinnik of failing to register it as a money services business, despite having American customers. They alleged that BTC-e was used for laundering illegal funds, helping drug dealers, cybercriminals, and other illicit activities.

Authorities estimated that the exchange was linked to $121 million in criminal transactions.

Vinnik’s Legal Troubles Come Back to Haunt

In 2020, a French court convicted Vinnik of money laundering and sentenced him to five years in prison. In May 2024, he pleaded guilty in a San Francisco federal court to conspiracy to commit money laundering. The U.S. Department of Justice (DOJ) highlighted his case as part of its global efforts to combat cybercrime.

Meanwhile, Marc Fogel had been detained in Russia for three and a half years on marijuana-related charges. His release is considered a significant diplomatic development.

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Marc Fogel Meets Trump at White House, Calls Him a Hero

Trump’s Middle East envoy, Steve Witkoff, received a call confirming Fogel’s release and was directed by Trump to bring him back to the U.S. Witkoff credited Saudi Arabia for helping finalize the deal and emphasized that it would not have happened without Trump’s intervention.

On Tuesday night, Trump welcomed Fogel to the White House and gave him a tour of the Lincoln Bedroom. Expressing his gratitude, Fogel said

“I want you to know that I am not a hero in this at all. And President Trump is a hero,”

Trump hinted that another American prisoner could be released as soon as Wednesday but did not reveal their identity. If confirmed, this could mark another major diplomatic exchange between the U.S. and Russia.