Aliaksandr Klimenka, a key figure linked to the now-defunct cryptocurrency exchange BTC-e, has been apprehended in Latvia and appeared in a San Francisco court to confront charges of money laundering brought by the U.S. Department of Justice (DOJ). Klimenka, a Belarusian-Latvian entrepreneur, along with others, is accused of laundering over $4 billion associated with criminal activities until 2017, including ransomware scams, identity theft schemes, and narcotics distribution rings during the early years of cryptocurrency from 2011 to 2017.
The DOJ unveiled the charges against Klimenka on Tuesday, revealing multiple counts of money laundering and other felonies. Allegations suggest that he engaged in substantial business activities in the U.S., failing to register his exchange as a money service with the U.S. Department of Treasury. Additionally, he purportedly evaded anti-money laundering regulations and "know your customer" safeguards mandated by federal law.
Currently held in federal custody in California, Klimenka was arrested in Latvia in December, responding to the extradition request from U.S. authorities. If convicted on all charges, he could face a maximum prison sentence of 25 years.
This development is part of a broader crackdown on individuals associated with BTC-e, with Russian national Alexander Vinnik facing similar charges in the past. BTC-e was shut down by U.S. law enforcement agencies in 2017, and Vinnik was arrested in Greece and subsequently extradited to the U.S. in 2022 to face charges related to computer intrusions, hacking incidents, ransomware scams, identity theft, corruption, and narcotics distribution.