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

Published by
Nidhi Kolhapur

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 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.

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.

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.

Nidhi Kolhapur

Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

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