Anatoly Legkodymov, the Russian co-founder and former CEO of the cryptocurrency exchange Bitzlato, has reportedly requested a pardon from former U.S. President Donald Trump. This request comes after Legkodymov's guilty plea in 2023 and subsequent sentencing to time served in 2024.
Legkodymov, also known as "Anatolii Legkodymov," "Gandalf," and "Tolik," pleaded guilty in a Brooklyn federal court to operating an unlicensed money transmitting business. The charges stemmed from his majority ownership of Bitzlato Ltd., a cryptocurrency exchange that prosecutors said acted as a primary conduit for dark market purchasers and sellers, as well as a safe haven for ransomware criminals. As part of his plea agreement, Legkodymov agreed to dissolve Bitzlato and relinquish any claim over approximately $23 million in seized assets.
Bitzlato, a Hong Kong-registered exchange, allegedly processed over $700 million in illicit funds, including millions in ransomware proceeds. It was also a primary counterparty of the notorious darknet drug bazaar, Hydra Market. The exchange was known for its lax identification procedures, requiring minimal information from its users, which made it popular among criminals seeking to launder illicit proceeds. Between 2018 and 2022, Bitzlato facilitated $700 million in direct or indirect transfers related to Hydra Market sales. Additionally, over $15 million in ransomware proceeds were allegedly laundered through the exchange.
Following France's extradition request, the U.S. judiciary decided to keep Legkodymov in custody. His lawyer, Ivan Melnikov, stated that Legkodymov's decision to seek a pardon from Trump was "based on the hope that the U.S. will return to a more balanced and fair approach to digital finance, and that the United States and Russia will gradually build dialogue". Melnikov also claims that Bitzlato was merely “a noticeboard for transactions,” and that Legkodymov is not a criminal but a target in a political campaign against the crypto market and talented Russian programmers.
The U.S. Attorney for the Eastern District of New York, Breon Peace, stated that Legkodymov was well aware that Bitzlato was being used by criminals due to its lax controls over illicit money transactions. Acting Assistant Attorney General Nicole Argentieri asserted that Legkodymov profited from catering to criminals and must now pay the price, emphasizing that transacting in cryptocurrency does not place individuals beyond the reach of the law.
Legkodymov's case is not the first instance of a Russian crypto platform facing legal trouble in the West. Poland agreed to extradite the former CEO of Wex, Dmitry Vasiliev, to the U.S. on fraud and money laundering charges. Wex was the successor to BTC-e, an exchange believed to have laundered $9 billion.
Legkodymov's request for a pardon from Donald Trump follows a history of controversial pardons in the crypto space. In January 2025, Trump pardoned Ross Ulbricht, the operator of the Silk Road darknet marketplace, who had served 11 years of a double life sentence without parole.
