English Section

Russian ‘crypto king’ detained in Warsaw, faces possible extradition to U.S.

06.12.2024 11:00
A Russian national wanted by U.S. authorities for alleged fraud and money laundering linked to one of the world’s largest cryptocurrency exchanges has been detained in Warsaw, Polish police said.
Photo:
Photo:CBŚP

The 37-year-old man, identified as Dmitry V., was arrested by an elite Central Bureau of Police Investigation (CBŚP) unit known as the “Shadow Hunters” at an apartment in the city’s Wola district, according to CBŚP spokesman Krzysztof Wrześniowski.

“Dmitry V. was wanted based on an order issued by the Warsaw District Prosecutor’s Office, acting on an extradition request from the U.S. Department of Justice,” Wrześniowski told the Rzeczpospolita daily. He added that V. is suspected of involvement in multiple fraud schemes, money transfers, and money laundering tied to one of the largest global cryptocurrency trading platforms.

Local media have described V. as a former operator of the now-defunct WEX exchange, once the largest crypto exchange in Russia before its collapse in 2018. The exchange’s downfall was reportedly linked to losses running into hundreds of millions of dollars.

The U.S. charges could carry a sentence of up to 20 years in prison if he is found guilty, Wrześniowski said.

Previous arrests and escapes

This is not Dmitry V.’s first arrest in Poland. In August 2021, he was detained at Warsaw’s Chopin Airport, spending several weeks in custody before being released. At that time, authorities were acting on a request from Kazakhstan, which sought his extradition on crypto-related fraud charges.

Media reports have repeatedly linked V. to Kremlin-linked figures and suggested that WEX was used to launder funds possibly connected to financing conflicts, including Russia’s aggression against Ukraine. Outlets such as Gazeta Wyborcza have reported that Russian security services, including the FSB, may have used WEX to funnel money into various covert operations.

The BBC previously cited intelligence sources suggesting that the disappearance of around USD 450 million from the WEX exchange could be tied to Russia’s security apparatus, possibly funding military activities.

In 2019, V. was reportedly apprehended in Italy, but released due to procedural errors in the extradition request. Another arrest in 2022 occurred in Zagreb, Croatia, on the basis of an Interpol notice from Kazakhstan, local media said.

Path to extradition

It remains unclear how V. managed to return to Poland and remain undetected for so long. Sources within the Polish police suggest he may have been living quietly in the country for an extended period. Now in custody, V. faces a renewed push for extradition to the United States, where prosecutors hope to try him for his alleged crimes.

No immediate comment was available from U.S. or Russian authorities on V.’s latest arrest.

(jh)

Source: Rzeczpospolita