In January 2023, Legkodymov, a Russian national, was arrested in Miami. The US Department of Justice alleges that illegal cryptocurrency transactions worth $700 million were conducted through Bitzlato, a Hong Kong-based service. The exchange reportedly earned around $15 million in proceeds from hackers who utilized malware to demand ransoms.
In addition, US prosecutors claim that Bitzlato provided services globally, including to American customers, without properly adhering to the KYC (Know Your Customer) procedures. Bitzlato’s management denies serving US citizens, but according to US law enforcement, over 250 million users from the United States accessed the exchange in July 2022.
In early December, Anatoly Legkodymov pleaded guilty to money laundering through cryptocurrency assets and agreed to forfeit $23 million as part of a plea agreement.