The U.S. is expected to release Russian prisoner Alexander Vinnik, a cryptocurrency kingpin, in exchange for American Marc Fogel, who was freed by Russia earlier this week, the White House confirmed Wednesday.
Fogel returned to the U.S. late Tuesday evening in an emotional homecoming. He had been imprisoned in Russia since 2021 and said he felt like the “luckiest man on earth” to be released.
Who is Vinnik?
Vinnik previously operated one of the world’s largest cryptocurrency exchange operations, BTC-e. After U.S. authorities in 2017 requested his detainment, Vinnik was arrested in Greece.
He was suspected of laundering $4 billion through crypto exchanges, and he later pleaded guilty to conspiracy to commit money laundering and faced 20 years in prison, Reuters reported.
At the time of his indictment, the Department of Justice (DOJ) said he was accused of laundering billions of dollars for other individuals, facilitating drug trafficking, identity theft and hacking. As the BTC-e operator, he oversaw a platform where users could trade bitcoins for other cryptocurrencies.
He would facilitate crimes by not requiring users to validate their identity, by not instituting protections or processes to combat money laundering and by anonymizing transactions, the DOJ alleged.
The department also argued Vinnik used the organization to launder money he received from Mt. Gox, a popular bitcoin exchange that collapsed over a decade ago.
Details revealed about Vinnek’s release
Early Wednesday, Kremlin spokesperson Dmitry Peskov told reporters that a U.S. prisoner would be returning to Russia as part of a deal struck with President Trump to release Fogel.
Peskov told reporters the prisoner would be publicly named once they reached Russian soil in the coming days, but it was later confirmed by a White House official that Vinnik was returning to Russia.
While it was later confirmed that Vinnik was the U.S.-based prisoner being exchanged for Fogel, the Trump administration had initially kept quiet about the release.
Steve Witkoff, President Trump’s Middle East envoy, flew back to the U.S. with Fogel late Tuesday. He said on Wednesday that he wasn’t sure if there were any Russian prisoners in the exchange.
Secretary of State Marco Rubio also said there “wasn’t some deal” with Russia that involved the release of “like 10 spies,” highlighting Trump’s leadership as a reason.
It was later confirmed by multiple outlets that Vinnik would be heading home to Russia.
Fogel’s homecoming
Fogel touched down in the U.S. on Tuesday, meeting with President Trump at the White House, expressing gratitude for both U.S. and Russian officials that negotiated the deal.
Fogel was working in Russia as a teacher when he was arrested in 2021 and sentenced to 14 years in prison after he was found carrying cannabis, which he said he was prescribed for back pain. Russia charged him with drug smuggling in 2022 but the Biden administration said he was wrongfully detained.
Trump officials touted Fogel’s release as a step toward ending the Russia-Ukraine war. Rubio called Fogel’s release a “good sign” and that things were headed in the right direction under Trump’s leadership.
It was initially unknown what communication Trump and Russian President Vladimir Putin had about the negotiations, but the two leaders spoke later on Wednesday about the war. Trump posted online thanking Putin for his “time and effort” facilitating Fogel’s release.
This was also the first prisoner swap of Trump’s second term.
It’s not known why the details of Vinnik’s release were not openly announced initially. During Biden’s term, the countries named individuals included in the negotiations.
