July 26 2017
The Financial Crimes Enforcement Network (FinCEN) has determined that grounds exist to assess a civil money penalties against BTC-E a/k/a Canton Business Corporation (BTC-e) and Alexander Vinnik, pursuant to the Bank Secrecy Act (BSA) and regulations issued pursuant to that Act.1
BTC-e operates as an “exchanger” of convertible virtual currencies, offering the purchase and sale of U.S. dollars, Russian Rubles, Euros, Bitcoin, Litecoin, Namecoin, Novacoin, Peercoin, Ethereum, and Dash. BTC-e also offered “BTC-e code,” which enabled users to send and receive fiat currencies, including U.S. dollars, with other BTC-e users. Since 2011, BTC-e has served approximately 700,000 customers worldwide and is associated with bitcoin wallet addresses that have received over 9.4 million bitcoin. Alexander Vinnik participated in the direction and supervision of BTC-e’s operations and finances and controlled multiple BTC-e administrative accounts used in processing transactions. penalties for these violations. FinCEN has determined that the proper penalties in this matter are a penalty of $110,003,314 imposed on BTC-e and a penalty of $12,000,000 imposed on Alexander Vinnik.