Alexander Vinnik, the convicted operator of the now-defunct BTC-e crypto exchange, is set to be freed as part of a high-profile U.S.-Russia prisoner swap, according to a report by The Wall Street Journal. Vinnik, who pleaded guilty to money laundering in 2024, will reportedly be exchanged for Marc Fogel, a U.S. schoolteacher detained in Russia on drug charges.

The deal, which unfolded on February 12, marks another controversial prisoner swap between the two nations. Fogel, who had been in Russian custody since 2021 after being arrested for carrying cannabis, returned to the U.S. on February 11. Reports indicate that another Russian national is also set to be released, though details remain unclear.

Vinnik, who was arrested in Greece in 2017 and later extradited to the U.S. in 2022, played a key role in BTC-e’s operations between 2011 and 2017. The exchange processed over $9 billion in transactions before being shut down in 2017 due to allegations of money laundering and links to the infamous Mt. Gox hack. Authorities claimed BTC-e facilitated illicit financial activity, leading to roughly $121 million in losses.

This latest prisoner swap echoes past exchanges, including the controversial 2022 trade of Russian arms dealer Viktor Bout, known as the “Lord of War,” for U.S. basketball star Brittney Griner. With several U.S. nationals still held in Russia, pressure is mounting on Washington to secure further deals.

BTC-e’s legacy remains a dark chapter in crypto history, with its shutdown leaving thousands of users without access to their funds. While repayments to creditors only began in 2024, Vinnik’s unexpected release raises questions about justice, diplomacy, and the global crackdown on crypto-related crimes.