Poland arrests Ex-CEO of WEX crypto exchange for US extradition

Polish authorities have arrested the former chief of the Russian crypto exchange WEX in Warsaw following an extradition request from the United States Department of Justice.

The individual, identified only as Dmitry V. due to local privacy laws, is suspected of involvement in fraud and money laundering during his time managing WEX, which was the successor to the now-defunct BTC-e.

WEX was known as Russia's largest crypto exchange before it collapsed in 2018, with reports indicating that around $450 million is currently missing from its operations.

“The man is in custody awaiting the completion of the entire procedure in connection with his extradition,” a spokesperson for the Polish police stated.

If extradited to the U.S., Dmitry V. could face charges that carry a maximum prison sentence of 20 years.

This is not Dmitry V.'s first encounter with law enforcement in Poland; he was previously arrested in August 2021 but was released after 40 days in custody due to a court ruling.

In addition, he was apprehended at Zagreb Airport in Croatia during the summer of 2022 under an Interpol request related to an extradition request from Kazakhstan.

Dmitry V. also faced arrest in Italy in 2019, but he was released shortly thereafter due to errors in the extradition paperwork.

WEX operated as a largely unregulated exchange that reportedly had minimal identity checks and processed funds from various high-profile crypto hacks, including those associated with Mt. Gox.

At its peak, WEX handled over $9 billion in transactions for more than one million users, many of whom were based in the U.S.

The recent arrest follows the guilty plea of Alexander Vinnik, the former head of WEX, who admitted to conspiracy to commit money laundering between 2011 and 2017 after being extradited to the U.S.