U.S. and Russia Exchange Prisoners... U.S. Releases 'Virtual Asset Tycoon'

U.S. Releases Alexander Vinnik, Co-Founder of BTC-e
Convicted of Money Laundering; U.S. Authorities Cite Platform's Role in Illicit Activities
One Day After American Marc Fogel's Release

Russian national Alexander Vinnik arrived at the Thessaloniki court in Greece on October 4, 2017, escorted by police. On the 12th (local time), a White House official announced that the United States plans to release Vinnik as part of a prisoner exchange with Russia the previous day. /AFP·Yonhap AFP Yonhap News Agency

Amid rising expectations for a ceasefire negotiation between Russia and Ukraine brokered by the United States, the U.S. and Russia have carried out a prisoner exchange. The U.S. is reportedly planning to repatriate Alexander Vinnik, a 'virtual asset tycoon,' to Russia on the 12th (local time). This comes just one day after American citizen Marc Fogel, who had been serving several years in a Russian prison on drug possession charges, was released.

The Russian national being released by the United States is Alexander Vinnik, the co-founder of the cryptocurrency exchange BTC-e, who had been incarcerated in the U.S. Vinnik was arrested in Greece in 2017 on money laundering charges and extradited to France in 2020. After being convicted of money laundering and sentenced to five years in prison, he served two years in France before being extradited to the United States in August 2022. In the U.S., he pleaded guilty to money laundering charges and was awaiting sentencing at the end of June.

The U.S. Department of Justice believes that Vinnik also established shell companies and financial accounts around the world to facilitate illicit fund transfers through his exchange. The amount involved with this exchange is estimated at $121 million. U.S. authorities have also claimed that BTC-e served as a major platform for cybercriminals, enabling ransomware extortion, identity theft, and drug trafficking.

A source told The Wall Street Journal (WSJ) that Vinnik would be released that day as part of the prisoner exchange between the United States and Russia. This comes just one day after American Marc Fogel, who had been serving several years in a Russian prison on drug possession charges, was released. One official stated that Vinnik is currently being held in California and is preparing for repatriation to Russia. According to the WSJ, an emergency closed-door hearing was held at a federal court in San Francisco the previous day to facilitate his release. The WSJ also reported that there were no records of Vinnik at the county jail where he had been held, and that even his attorneys were unaware of the situation, suggesting that he may have already been released.

Vinnik's French lawyer, Frederic Belot, also told Russia's RIA Novosti news agency that "Vinnik will be repatriated to Russia following the release of American Marc Fogel," confirming that the release process is underway. Belot stated that he visited Vinnik at a California prison last summer and lobbied for Vinnik to be included in the new prisoner exchange. He also met with Fogel's attorneys and received considerable assistance from them.

This prisoner exchange drew attention as it was carried out at a time when President Trump, who is eager for a swift end to the war in Ukraine, is increasingly likely to hold talks with Russian President Vladimir Putin. In fact, President Trump expressed his gratitude to President Putin and voiced hope that the prisoner release would play a significant role in ending the war in Ukraine.

This is the first prisoner exchange between the United States and Russia in six months, since August of last year when former President Joe Biden was in office. At that time, the United States and other Western countries exchanged a total of 24 prisoners with Russia, marking the largest such exchange since the end of the Cold War. Among those released were Western journalists and officials, including Wall Street Journal reporter Evan Gershkovich, who was arrested in Russia on espionage charges in March of last year. In response, the West released eight Russian nationals who had been arrested for serious crimes committed locally or were former members of Russian military or intelligence organizations.

President Trump personally welcomed Fogel at the White House the previous day and announced that another release would take place on the 12th. In contrast, spokesperson Dmitry Peskov declined to comment on the possibility of further releases, saying, "I have nothing to say."

American Marc Fogel was arrested by Russian authorities in the summer of 2021 after drugs were found in his luggage upon entering Russia from the United States. He was convicted and had been serving time in a Russian prison.

Meanwhile, it has been reported that Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), and Saudi Crown Prince Mohammed bin Salman provided assistance during this prisoner exchange process. CNN reported that special envoy Stephen Witkoff met with Dmitriev, a close aide to President Putin, to negotiate Fogel's release. Reuters also cited anonymous sources stating that Dmitriev and Crown Prince Mohammed bin Salman were involved in the prisoner exchange negotiations.