Bitzlato Crypto Exchange Founder Sentenced to 18 Months in Prison

The Russian founder of the Bitzlato cryptocurrency exchange has been sentenced to 18 months in prison for operating an unlicensed remittance business and concealing illegal gambling and drug trafficking profits worth over $700 million. Anatoly Legkodymov has been in federal detention since his arrest in January 2023 and was sentenced by US Judge Eric Vitaliano in the Brooklyn area of New York on Thursday. Legkodymov pleaded guilty in December and admitted to knowing for years that Bitzlato was being used as a channel for dark web transactions, including the infamous Hydra Market for drugs, which was shut down by authorities in 2022. As part of his plea, he also agreed to forfeit his claim to $23 million in cryptocurrency seized by French authorities. Prosecutors in the Brooklyn US Attorney's Office, including Breon Peace, argued that Legkodymov, who owned and controlled Bitzlato, should be sentenced to at least four years in prison for "creating a clearinghouse for dirty money." Despite being warned multiple times that the exchange had become a "haven for criminals, drug dealers, and ransomware extortionists" on the dark web, he continued to allow the exchange to operate.