Anatoly Legkodymov Sentenced to 18 Months in Prison
Anatoly Legkodymov, the founder of the Bitzlato cryptocurrency exchange, has been sentenced to 18 months in prison in the United States. The court issued this verdict for conducting unlicensed business and laundering illegal proceeds related to gambling platforms and drugs, amounting to $700 million. Legkodymov was arrested in January 2023 and in December pleaded guilty to processing transactions for darknet marketplaces, including the platform Hydra, which was shut down by law enforcement in 2022.
Prosecution and Judgment
Prosecutor Breon Pierce insisted on a harsher punishment, demanding a minimum of four years in prison. He argued that Legkodymov continued to operate the platform despite warnings about its use for criminal activities. Judge Eric Vitaliano acknowledged Legkodymov’s awareness of the illegality of his actions but also noted his entrepreneurial qualities. The judge also pointed out the terrible conditions at the Metropolitan Detention Center where Legkodymov is held, mentioning that there have recently been two murders among inmates.
Bitzlato Users’ Funds
As for the Bitzlato users, at the time the platform was suspended, they were allowed to withdraw 60% of their total balance. The last payments were completed on May 30, 2024. However, the remaining funds are locked in France as part of a criminal investigation. Users have two options to retrieve their funds: either go to court in France to prove the legality of their cryptocurrency assets or wait for the end of the judicial process, which the team estimates could take 2-3 years.
