BTC-e was one of the most important crypto exchanges in the United States between 2011 and 2017. During this period, the company had one of its most lucrative markets there with trading volumes approaching $10 billion. But local authorities quickly noticed that BTC-e’s activity was not entirely legal. According to the Justice Department, the ringleaders allowed users (many of whom were criminals) to trade bitcoin (BTC) and money launder anonymously. To shed light on the matter, authorities seized Google officials. But things didn’t go as planned.
Google had undermined a federal investigation into the crypto exchange
Google is improving its legal compliance program. The announcement comes from a statement from the US Department of Justice, available as of October 25. It comes after Google lost data related to the BTC-e crypto exchange a few years ago. This one, which related to criminal activities, was closed in 2017.
Indeed, the Justice Department suspected illegal activities at the crypto service provider. In 2016, he asked Google to provide him with data on BTC-e. But Google countered that with case law that limited this kind of collaboration to data stored on US soil. The company added that due to certain optimization algorithms that move data around the world, it was unable to clearly define what information it should provide to authorities. A position that caused the Justice Department’s request to fail.
The unblocking of the situation by Congress
This setback prompted Congress to pass the CLOUD Act. Indeed, the text obliged that all related data is delivered regardless of where it is stored. Unfortunately, the crypto exchange details, initially sought by the ministry, were lost. Google has assured that it is working to prevent such incidents in the future. In fact, the statement from the Justice Department notes that the company has already invested more than $90 million in additional resources and personnel to adapt its compliance program to the new requirements.
“The technology giant will ensure timely and complete responses to legal processes such as subpoenas and search warrants going forward”specifies the note from the ministry.
BTC-e officials had made deals with criminal groups involved in various human trafficking activities. This to launder money from their activities, via bitcoin (BTC) and the platform. The US authorities quickly shut down the company’s activities. Last August, they announced the extradition of the exchange’s former director, Alexander Vinnik, from Greece to the United States.
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Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only added to my enthusiasm. I therefore decided to study and understand the blockchain and its many applications and to pass on information about this ecosystem with my pen.