According to reports from Russia’s Tass news agency, the Limassol District Court in Cyprus on November 27, 2018, dismissed the lawsuit against alleged BTC-e operator Alexander Vinnik. The plaintiffs withdrew accusations of fraud, money laundering, and other serious crimes, with the court ordering them to cover all legal costs incurred by the defendant.
Vinnik’s lawyer, Timofei Musatov, stated in a press release: “A court session of the Limassol District Court was held on November 27, 2018, where the plaintiffs withdrew the action to accuse Alexander Vinnik of fraud, money laundering and other grave crimes.” Musatov noted that the court “not only formally satisfied the motion, but also made the decision on the compensation of all legal costs the defendant incurred.”
He further asserted that the case “fell apart at the very early stage … at the initiative of the plaintiffs themselves,” adding that it “proves the weakness of accusations against Alexander, vulnerability of plaintiffs’ legal position and their unwillingness to get the case as far as an open legal battle.”
Ongoing Legal Battles
Despite the dismissal in Cyprus, Vinnik remains embroiled in multiple extradition requests and criminal allegations from the United States, France, and Russia. He was detained in Greece on July 25, 2017, on a U.S. Department of Justice warrant and has been held in a Greek prison ever since. U.S. authorities accuse him of laundering between $4 billion and $9 billion from the Mt. Gox hack through BTC-e and other exchanges.
Last year, the Greek Supreme Court ruled to extradite Vinnik to the United States and later also to Russia. However, due to conflicting extradition requests, the final decision is expected to be made by Greece’s Minister of Justice or possibly the national leadership. France has also joined the dispute, accusing Vinnik of cybercrime and money laundering.
In an interview with Tass last October, Vinnik claimed he was merely a technical expert at BTC-e, stating: “I gave some advice to that platform. That’s not a crime, and the exchange itself is not a crime, it is just a platform for exchanging cryptocurrency.” Last week, his lawyer accused Greek Supreme Court judges of violating his rights, and Vinnik reportedly went on a hunger strike shortly after.
The dismissal of the Cypriot case provides a modest victory for Vinnik’s defense team, but the core legal challenges remain. With three nations vying for his extradition, Vinnik’s future remains uncertain, highlighting the complex interplay of cross-border justice in the cryptocurrency industry.