US Releases Russian Bitcoin Exchange Co-Founder Alexander Vinnik In Prisoner Deal With Moscow

The United States has released Alexander Vinnik, the Russian co-founder of the Bitcoin BTC/USD-e cryptocurrency exchange, as part of a negotiated agreement with Moscow.

What Happened: His release follows that of Marc Fogel, an American detained in Russia since 2021, The Wall Street Journal reported.

Officials have characterized the move as part of ongoing diplomatic discussions rather than a direct prisoner swap.

Vinnik, who had been in U.S. custody in California, is now being transferred to Russia.

His legal team confirmed that his family had been informed of the development.

Vinnik was awaiting sentencing in the U.S. after pleading guilty to conspiracy to commit money laundering.

Authorities had linked BTC-e to cybercriminal activities, including ransomware operations, identity theft and financial crimes.

Before his extradition to the U.S. in 2022, Vinnik was detained for five years in Greece and France following his 2017 arrest.

Initially pleading not guilty, he later admitted to some charges in May 2024.

His French attorney, Frédéric Bélot, expressed relief at his release, noting its significance for both Vinnik and his family.

The decision to release Vinnik was made a day after Marc Fogel returned to the U.S., where he was welcomed at the White House by President Donald Trump.

Trump later stated that he had spoken with Russian President Vladimir Putin about broader geopolitical concerns, including efforts to bring an end to the war in Ukraine.

He described the conversation as productive, stating that both leaders agreed on the need to prevent further loss of life.

Secretary of State Marco Rubio, when questioned about the agreement, denied that the U.S. had made significant concessions, stating that the deal did not involve releasing multiple individuals in exchange for Fogel's freedom.

In addition to Fogel's release, Radio Liberty confirmed that Belarusian journalist Andrey Kuznechyk had also been freed after more than three years in detention.

The U.S.-funded news outlet credited diplomatic efforts for securing Kuznechyk's release, adding that he had reunited with his family in Lithuania.

The Kremlin acknowledged the deal, with spokesman Dmitry Peskov stating that negotiations had been conducted with careful deliberation.

He also noted that another Russian national would soon be released from U.S. custody, though he did not specify the individual.

While Peskov downplayed the idea of this deal being a major breakthrough, he said it contributed to rebuilding trust between Washington and Moscow.

Also Read: Will Donald Trump Help Broker A Peace Deal In Ukraine? Don’t Be So Sure, Polymarket Trader Say

Why It Matters: Unlike previous high-profile prisoner exchanges, such as the swap of WNBA player Brittney Griner for Russian arms dealer Viktor Bout, this agreement was carried out in stages rather than as a simultaneous exchange.

Trump, who has criticized past prisoner deals under the Biden administration, described this arrangement as fair and well-negotiated.

Vinnik's return to Russia makes it unlikely that he will face legal consequences in other countries that had been pursuing charges against him. U.S. prosecutors had accused him of running a large-scale money laundering operation through BTC-e, facilitating billions of dollars in illicit transactions between 2011 and 2017.

His legal team had sought to argue for a reduced sentence in the U.S., citing the years he had already spent in detention abroad. However, his release means that he will not serve additional time in the American judicial system or face potential extradition elsewhere.

The releases of Vinnik, Fogel, and Kuznechyk highlight the ongoing diplomatic maneuvering between Washington and Moscow.

While officials from both sides have framed these moves as signs of goodwill, it remains unclear whether this exchange will lead to further negotiations or influence broader geopolitical relations.

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