Poland Arrests Former CEO of Russian Crypto Exchange WEX for US Extradition

Polish authorities have arrested Dmitry V., the former CEO of the Russian cryptocurrency exchange WEX, in central Warsaw, following a request from the United States Department of Justice for his extradition. Dmitry V., whose full identity is protected under local law, is facing charges related to fraud and money laundering during his time at WEX — a successor to the infamous BTC-e exchange, which was Russia's largest crypto platform before its collapse in 2018.

According to reports from Reuters and Polish news outlet Rzeczpospolita, Dmitry V. is suspected of orchestrating fraudulent activities and facilitating money laundering schemes while managing WEX. The Polish police confirmed his arrest, stating that he is currently in custody as his extradition process unfolds.

A spokesperson for the Polish police told Reuters that Dmitry V. could face up to 20 years in prison if extradited and convicted in the United States. This arrest marks a significant development in the international efforts to bring him to justice for his alleged involvement in illicit activities tied to WEX.

Dmitry V. has a history of multiple arrests related to similar matters. He was initially detained in Poland in August 2021 but was released after 40 days in custody following a court decision. He was also apprehended in Zagreb, Croatia, in the summer of 2022 at the request of Kazakhstan, under an Interpol warrant. In 2019, Italian authorities arrested him, but the case was dropped after errors were discovered in the extradition request.

WEX: A Hub for Illicit Crypto Activity

WEX was notorious for operating with minimal identity checks and gaining a reputation as a "dark" exchange that facilitated transactions for various illicit activities. The exchange was linked to several high-profile cryptocurrency hacks, including the infamous Mt. Gox breach. At its peak, WEX processed over $9 billion in transactions for more than one million users, many of whom were based in the United States.

One of the most significant cases related to WEX involved Alexander Vinnik, the former head of BTC-e, which later became WEX. In May 2023, Vinnik pleaded guilty to conspiracy to commit money laundering for activities that occurred between 2011 and 2017. Known as “Mr. Bitcoin,” Vinnik was arrested while vacationing in Greece in July 2017 and was subsequently extradited to the United States in 2022. He had spent two years in a French prison before being transferred to the US.

$450 Million Missing

Reports indicate that approximately $450 million in funds are still missing from WEX, adding to the complexity of the ongoing investigation. Dmitry V.'s arrest brings renewed attention to the exchange's controversial operations and the broader issue of cryptocurrency-related crimes, which have been increasingly scrutinized by international authorities.

As the extradition process proceeds, all eyes will be on whether Dmitry V. will face trial in the US, where he could potentially face severe legal consequences for his role in the activities of WEX.