President Trump negotiated a prisoner exchange , swapping BTC-e founder Alexander Vinnik for American school teacher Marc Fogel. Despite Trump’s recent crypto-friendly actions , this deal was not about supporting the industry but securing Fogel’s release. Vinnik, tied to a massive money laundering case, is expected to remain in Russian custody. Vinnik has faced years of legal trouble since his arrest in 2017. He launched BTC-e, an early crypto exchange, in 2011, but the platform was shut down amid serious allegations of money laundering and other crimes. Now, according to the New York Post , Trump has sent Vinnik back to Russia in exchange for Fogel. “We now know what Russia received in this deal. Accused Russian money launderer Alexander Vinnik is being released from US custody in exchange for Marc Fogel,” CNN’s Zachary Cohen reported. The swap allows Fogel, who was sentenced to 14 years in Russia for carrying marijuana, to return to the US. Vinnik’s legal battles have stretched across multiple countries. After his 2017 arrest in Greece, he was extradited to France and later sent to the US in 2022. While facing previous money laundering charges, new allegations surfaced in 2024, leading to a guilty plea . The White House defended the deal, stating, “We view this as a very fair trade. We are not exchanging the Merchant of Death for a basketball player.” Officials confirmed that Vinnik remains in US custody in northern California, awaiting his transfer to Russia . While this exchange may seem like part of Trump’s broader support for crypto figures , it’s not the same as his recent pardon of Silk Road founder Ross Ulbricht. Ulbricht was freed after over a decade in prison, a decision widely celebrated in the crypto space. However, Vinnik’s case is different. The Russian government has been pushing for his extradition since at least 2018. Reports suggest that he admitted to Russian law enforcement that he was involved in a cyber fraud case linked to BTC-e, with damages totaling $14.6 million. Even though he may prefer being in Russia, Vinnik is unlikely to gain full freedom. The US government’s priority was Fogel’s release , not helping Vinnik. Fogel has already returned home, visited the White House , and publicly thanked Trump. Meanwhile, Vinnik remains in custody, awaiting his transfer to Russia.
