(LONDON) -- The United States is preparing to return cybercrime kingpin Alexander Vinnik to Russian custody as part of an exchange for American Marc Fogel, a U.S. official said Wednesday.
Kremlin spokesman Dmitry Peskov declined to identify Vinnik but acknowledged earlier Wednesday that a Russian citizen was freed in exchange for Fogel, who had been held in Russian since his arrest in 2021.
"This citizen of the Russian Federation will also be returned to Russia in the coming days," Peskov said Wednesday.
Fogel was returned to the United States on Tuesday.
Vinnik's lawyers, Arkady Bukh & Associates, said he remained in the U.S. on Wednesday afternoon.
"At the moment, we can confirm that a hearing has recently been held in the Federal Court of the State of Florida regarding Mr. Vinnik," they said in a statement. "However, due to the judge's decision, the materials of the hearing are classified, and we cannot comment on its course and content."
Vinnik, the owner and operator of one of the world's largest currency exchanges, was allegedly instrumental in facilitating the transfer of billions of dollars for criminals across the globe, supporting drug trafficking rings, ransomware attacks and the corruption of public officials.
Last year, Vinnik pleaded guilty to conspiracy to launder billions of dollars through cryptocurrency exchange BTC-e. The Department of Justice alleged under Vinnik's operation, BTC-e facilitated over $9 billion in worldwide transactions, serving as one of the main ways for cyber criminals to launder and move their criminal proceeds.
BTC-e has been implicated in multiple wide-ranging crimes, according to the Department of Justice, which alleges Vinnik himself was responsible for more than $120 million in losses.
As part of the deal, Vinnik is forfeiting $100 million of his criminal proceeds, an official said.
White House press secretary Karoline Leavitt called it "a very good deal for the United States of America and for the rest of the world."
She continued, "As part of this exchange, he has forfeited more than $100 million that he obtained in that illegal crime. And in exchange, of course, we got Marc Fogel, who is a middle school teacher who kissed the American soil that kissed the ground last night when he returned to the United States of America. It was a great deal. And a great day for our country."
Vinnik was arrested in Greece in July 2017 after he was charged in a 21-count indictment that implicated the Russian cryptocurrency operator in the infamous 2014 hack of Mt. Gox, which at one point handled more than 70% of the world's bitcoin transaction. The DOJ alleges Vinnik laundered money he received as a result of the hack to conceal his involvement in the subsequent investigation of Mt. Gox's collapse.
Vinnik and his lawyers have been outspoken about their interest in a potential prisoner swap, making the unusual request in 2023 to be released from a protective order so they could lobby for an exchange.
"Mr. Vinnik's case is unquestionably one of significant public interest. He has been the subject of political negotiations over a prisoner swap with Russia at the highest levels of the government," his lawyers wrote in a court filing.
Vinnik's sentencing in California was scheduled to take place in June, though a federal judge held an abruptly scheduled status conference in the case Tuesday. Ahead of his sentencing, Vinnik was housed at Alameda County Jail in California and was transferred Tuesday, ABC News has learned.
President Donald Trump didn't disclose on Tuesday the negotiations that led to Fogel's release or say whether there had been any conversations with Russian President Vladimir Putin.
"I can only say this: We got a man home whose mother and family wanted him desperately," Trump said.
Mike Waltz, the White House national security adviser, said in a statement on Tuesday that Washington had "negotiated an exchange that serves as a show of good faith from the Russians and a sign we are moving in the right direction to end the brutal and terrible war in Ukraine." His statement did not include details on the exchange.
Trump earlier on Tuesday had been asked if Russia had given the United States anything in return.
"Not much, no," Trump said. "They were very nice. We were treated very nicely by Russia, actually."
Peskov on Wednesday declined to say whether additional prisoner exchanges were expected in the future, but said that "contacts between the relevant departments have intensified in the last few days."
Then-Secretary of State Antony Blinken said in October 2024 that Fogel, an American teacher, had been "wrongfully detained," the State Department confirmed to ABC News.
The U.S. tried but was unable to include Fogel in the large prisoner swap in August 2024 that freed Wall Street Journal reporter Evan Gershkovich and former U.S. Marine Paul Whelan, a State Department spokesperson said last year.
ABC News' Joe Simonetti, Michelle Stoddart, Nathan Luna and Meredith Deliso contributed to this report.
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