BTC-e
A cryptocurrency exchange (2011–2017) that the U.S. DOJ called one of the primary ways cybercriminals laundered illicit funds. It received proceeds of hacks, ransomware, and drug sales — including ~300,000 BTC tied to the Mt. Gox theft — and was shut down in 2017 when operator Alexander Vinnik was arrested.
Also known as: BTC-e, WEX
Summary
BTC-e was a cryptocurrency exchange that operated from 2011 until July 2017. According to the U.S. Department of Justice, it was "one of the primary ways by which cyber criminals around the world transferred, laundered, and stored" criminal proceeds, processing more than $9 billion across over a million users. [1][2]
How it operated
The DOJ said BTC-e did not register as a U.S. money services business and ran no know-your-customer or anti-money-laundering controls, collecting virtually no customer identification — which made it attractive for laundering. It received funds from computer intrusions, ransomware, identity theft, corrupt officials, and narcotics sales, and used shell companies to process fiat conversions. [1][2]
Link to Mt. Gox
BTC-e was tied to the collapse of the Mt. Gox exchange: investigators say roughly 300,000 BTC stolen from Mt. Gox were laundered through BTC-e. The platform was shut down in July 2017, the same time operator Alexander Vinnik was arrested in Greece. [2]
Outcome
In 2017 FinCEN fined BTC-e $110 million and Vinnik $12 million. Vinnik was extradited to the U.S. in 2022 and pleaded guilty to a money-laundering conspiracy in May 2024; the DOJ said he was responsible for at least $121 million in losses. [1][2]
Bracketed numbers refer to the numbered sources listed below.
People & entities involved
Sources (2)
See also
- Loci (LOCIcoin)TokensA 2017–2018 ICO for 'LOCIcoin' tied to the InnVenn IP-search platform. The SEC charged Loci and CEO John Wise with fraud for raising $7.6M on false claims about revenue, headcount, and user base; Wise also misused investor funds. Settled with a $7.6M penalty and an officer/director bar.
- Blockchain Terminal (BCT)TokensA 2017–2018 ICO (BCT tokens, ~$30M) for a 'Blockchain Terminal' — a Bloomberg-style crypto trading terminal. The SEC and DOJ said convicted ex-hedge-funder Boaz Manor secretly ran it under a fake identity ('Shaun MacDonald'), using associate Edith Pardo as a front, and lied about the product's adoption.
- Crowd Machine (CMCT)Tokens
This page was last updated on Jun 8, 2026. View revision history.