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Bitcoin fraud suspect Vinnik charged by US grand jury | |
(about 13 hours later) | |
A Russian national has been charged by a US grand jury over the alleged laundering of billions of dollars using virtual currency Bitcoin. | |
Alexander Vinnik, 38, was arrested in Greece near the northern city of Thessaloniki on a US warrant. | |
A US attorney later announced he had been charged with 21 counts, including laundering stolen funds from the hack of the "Mt Gox" Bitcoin exchange. | |
The gang is believed to have laundered some $4bn (£3bn) over several years. | |
Mr Vinnik is said to be the "brain" behind the illegal operations. He has so far made no public comments. | Mr Vinnik is said to be the "brain" behind the illegal operations. He has so far made no public comments. |
The US Attorney's Office in California's northern district said the indictment covered "operating an unlicensed money service business, money laundering and related crimes." | |
In particular, it alleged that Mr Vinnik received funds "from the infamous computer intrusion or 'hack' of Mt Gox." | |
Mt Gox was a Bitcoin exchange - a place where real money could be exchanged for the digital currency - which was once the largest of its kind. | |
It was forced to declare bankruptcy in 2014 after a hack which stole about 850,000 Bitcoins - worth millions at the time. | |
Local media reports say that Greece will soon begin negotiations with the US about Mr Vinnik's extradition. | Local media reports say that Greece will soon begin negotiations with the US about Mr Vinnik's extradition. |
If convicted in the US, Mr Vinnik could face up to 20 years in prison on the money laundering charges. | |
Bitcoin is a digital currency that operates completely online. | Bitcoin is a digital currency that operates completely online. |
Each Bitcoin is basically a computer file which is then stored in a "digital wallet" app on a smartphone or computer. | Each Bitcoin is basically a computer file which is then stored in a "digital wallet" app on a smartphone or computer. |
Unlike traditional currencies such as the US dollar, Bitcoin has no central bank and is not backed by any government. | Unlike traditional currencies such as the US dollar, Bitcoin has no central bank and is not backed by any government. |
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