New Zealand authorities seized $90 million tied to crypto laundering

According to recent reports from New Zealand, the country’s police managed to seize as much as $90 million (140m NZD). The funds are tied to Alexander Vinnik, a suspected Bitcoin money launderer. The money was seized by the Asset Recovery Unit, and prior to that, it was controlled by a company connected to Vinnik.

The largest seizure in NZ history

The New Zealand police also stated that the freezing of the funds was done in coordination with the US IRS. They further added that the recovered funds are “likely to reflect the profit gained from the victimization of thousands, if not hundreds of thousands, of people globally,” referring to the victims of organized crime and cybercrime.

The NZ police also stated that this is the largest seizure in the country’s history.

From what is known about Vinnik, he was accused of laundering as much as $4 billion, which translates to around 300,000 Bitcoin. His operation lasted for around six years, and he used his exchange, BTC-e, which he also operated during this time.

The exchange was allegedly operating with no AML policies or controls, which allowed it to launder the funds stolen in numerous illegal activities over the years.

What will happen next?

Vinnik, also known as Mr. Bitcoin, is also believed to have processed the funds that came from the Mt. Gox hack, over half a decade ago.

After his initial arrest in Greece in 2017, Vinnick was extradited to France, where he currently awaits charges of conspiracy, extortion, and money laundering. However, it is possible that he will be extradited yet again, this time to his home country, Russia, or perhaps the United States.

Now, the police aim to demand forfeiture of the seized funds from the High Court. However, it remains undisclosed whether the seized funds are in crypto or fiat currencies.