A Russian man linked to the collapse of the WEX cryptocurrency exchange has been arrested in Poland. This arrest is part of a larger, international investigation into a massive crypto fraud.
The Arrest in Warsaw
Polish authorities, specifically the elite “Shadow Hunters” unit, arrested 37-year-old Dmitry Vasiliev (referred to as “Dmitry V.” by Polish media due to privacy laws) in Warsaw. Vasiliev, the former CEO of WEX, was detained based on a US extradition request. He’s accused of fraud and money laundering related to the exchange’s operations. This isn’t Vasiliev’s first brush with the law; he was briefly arrested in Poland in 2021 on a request from Kazakhstan for similar crypto crimes, but he managed to return to Russia. This time, however, he’s facing extradition to the US, where he could spend up to 20 years in prison.
The WEX Collapse: A Half-Billion Dollar Disappearance
WEX, which launched after the closure of the infamous BTC-e exchange, imploded in 2018, leaving around $450 million of customer funds missing. While Vasiliev was the public face of WEX, reports suggest that Alexey Bilyuchenko, a partner of Alexander Vinnik (from the BTC-e case), was the real power behind the scenes. Bilyuchenko, with funding from millionaire Konstantin Malofeyev, allegedly lost control of the exchange and the funds in a bizarre scenario involving fake security agents and a forced transfer of funds to a Russian Federal Security Service (FSB) controlled wallet. While Bilyuchenko claims he was scammed, Malofeyev denies any involvement. Bilyuchenko was eventually arrested in Russia and later charged by US authorities for his role in the BTC-e exchange and the Mt. Gox hack.
An International Manhunt
This case highlights the complexities of tracking down criminals in the world of cryptocurrency, where vast sums of money can disappear quickly across international borders. Vasiliev’s arrest and pending extradition are significant steps in bringing those responsible for the WEX collapse to justice. The ongoing investigation continues to unravel the intricate web of deceit and alleged collusion surrounding this massive crypto heist.
