Gandalf’s crypto empire crumbles: Bitzlato boss pleads guilty in Brooklyn federal court
Anatoly Legkodymov, also known as “Gandalf,” a Russian national and majority owner of Bitzlato Ltd., a cryptocurrency exchange, pleaded guilty in Brooklyn Federal Court to operating an illicit money transmitting business on Wednesday.
Bitzlato was involved in processing more than $700 million in illicit funds, including ransomware proceeds, and was linked to Hydra Market, a darknet bazaar for drugs and other illegal activities. Legkodymov agreed to dissolve Bitzlato and forfeit about $23 million in seized assets.
Legkodymov, a senior executive and majority shareholder of Bitzlato Ltd., a Hong Kong-registered global cryptocurrency exchange, is alleged to have operated with minimal identification requirements for its users.