Bitzlato Founder Requests Presidential Pardon from Trump After Guilty Plea

Russian Crypto Executive Seeks Clemency Following Prison Term

Anatoly Legkodymov, the Russian national and former CEO of cryptocurrency exchange Bitzlato, has formally requested a federal pardon from US President Donald Trump. The request comes after Legkodymov pleaded guilty to operating an unlicensed money transmitting business and served 18 months in federal prison.

Background of the Case

Legkodymov was indicted in January 2023 on charges related to running an unlicensed money transmission operation through Bitzlato. He entered a guilty plea in December 2023 and was sentenced to time served in July 2024 after spending approximately 18 months in custody.

According to court documents, US authorities alleged that Bitzlato facilitated the transmission of illicit funds, with hundreds of millions of dollars flowing from the exchange to the dark web Hydra Marketplace. The exchange also reportedly received about $15 million connected to ransomware attacks.

Legal Team's Justification for Pardon Request

Ivan Melnikov, vice president of the Russian branch of the International Committee for Human Rights, defended Legkodymov's pardon request. According to Russian state media outlet TASS, Melnikov stated that Legkodymov became a target in a political campaign against the crypto market and talented Russian programmers.

The legal team expressed hope that the US would return to a more balanced and fair approach to digital finance under Trump's administration.

International Legal Complications

French authorities were reportedly seeking to extradite Legkodymov to face similar charges after his completion of the US sentence. This international dimension adds complexity to his legal situation and may influence the timing of his pardon request.

Trump's Track Record with Crypto Pardons

Since taking office in January 2025, President Trump has issued at least 58 presidential pardons. Several notable cryptocurrency industry figures have received clemency, including:

High-Profile Crypto Pardons

Ross Ulbricht, founder of the Silk Road marketplace, received a pardon after facing two life sentences in federal prison. Four former executives of cryptocurrency exchange BitMEX also received pardons: Arthur Hayes, Benjamin Delo, Gregory Dwyer, and Samuel Reed.

Other Pending Pardon Requests

Former Binance CEO Changpeng Zhao applied for a pardon from Trump in May after serving four months in prison. Zhao had pleaded guilty to one felony charge in November 2023 as part of a settlement between US authorities and Binance.

Reports suggest that former FTX CEO Sam Bankman-Fried is also attempting to secure a federal pardon by engaging with conservative media outlets and distancing himself from the Democratic Party. Bankman-Fried was sentenced to 25 years in prison in 2024 and remains incarcerated at the Federal Correctional Institution in Terminal Island.

Current Status of the Pardon Request

It remains unclear whether President Trump has received Legkodymov's pardon request or if he will take action on it. The White House has not responded to requests for comment regarding the matter.

Impact on Crypto Industry

The case highlights the ongoing legal challenges facing cryptocurrency exchange operators and the complex regulatory environment surrounding digital assets. The outcome of Legkodymov's pardon request could influence how other crypto executives approach similar legal challenges.

Regulatory Implications

The Bitzlato case underscores the importance of proper licensing and compliance with anti-money laundering regulations for cryptocurrency businesses operating in the United States. The case serves as a reminder of the serious consequences for exchanges that fail to implement adequate know-your-customer procedures and transaction monitoring systems.

Future Outlook

As the cryptocurrency industry continues to evolve, the resolution of high-profile cases like Legkodymov's may set precedents for how regulatory authorities and the judicial system handle similar violations in the future. The industry watches closely as Trump's administration develops its approach to cryptocurrency regulation and enforcement.