The Russian government could be adding $30 million worth of assets seized from Georgy Satyukov to its treasury. The former Ministry of Internal Affairs employee is believed to have accepted bribes worth $30 million and used them to buy various luxury assets.
Russian prosecutors are seeking to seize property worth over 2.1 billion rubles from former Ministry of Internal Affairs official Georgy Satyukov, who allegedly accepted $184 million in Bitcoin and $30 million in Ethereum in bribes.
How did a Russian police official become a millionaire?
A former Ministry of Internal Affairs employee named Georgy Satyukov was identified by Russian prosecutors as the owner of various luxury assets, which Russian authorities believe were purchased with bribes from the operators of WEX crypto exchange.
These luxury assets include 13 apartments in Russia, several commercial properties in St. Petersburg, and a villa in the UAE. Satyukov’s property holdings also include a $1 million property in the Russian city of Saratov registered in his brother’s name.
Beyond real estate, investigators discovered two Porsche Cayenne Turbo cars registered in Satyukov’s name, all purchased after 2021, along with seven Patek Philippe watches, an ST Dupont Paris watch, and other jewelry valued at over $1.3 million.
A search of Satyukov’s bank account revealed cash reserves of $540,000, as well as $38,500 in euros, and $14.2 million in Russian rubles held by him and his immediate family members.
Satyukov began working at the ministry in 2001 and, between 2019 and 2021, headed a top-secret department codenamed “K” that specialized in investigating financial fraud cases and cybercrime. During his entire time as a Ministry of Internal Affairs employee, Satyukov’s salary would have added up to just $126,165.
The Prosecutor General’s Office has filed a lawsuit demanding that movable and immovable property belonging to Satyukov, his relatives, and Dmitry Sokolov, Satyukov’s colleague at the Ministry of Internal Affairs, who is considered an intermediary in the bribery scheme, be transferred to state income.
What was the WEX Exchange?
Before its collapse, the WEX exchange was a popular platform that emerged in September 2017 as a successor to BTC-e.
BTC-e was founded in July 2011 by Alexander Vinnik and Aleksandr Bilyuchenko, and as of February 2015, it handled around 3% of all Bitcoin exchange volume. However, the U.S. Justice Department shut the exchange down in July 2017 when it charged Vinnik with operating an alleged international money laundering scheme.
The exchange was accused of facilitating criminal activities because it had no anti-money laundering or know-your-customer processes and collected virtually no customer data.
WEX promised to compensate former BTC-e users for their losses, but in the summer of 2018, WEX clients’ wallets were suddenly frozen, and funds could only be removed at a 90% loss. Approximately $450 million in cryptocurrency vanished from the exchange.
It was Alexey Ivanov, who pleaded guilty to embezzling 3.17 billion rubles from the cryptocurrency exchange, who pointed authorities to Satyukov after concluding a pre-trial cooperation agreement with the Prosecutor General’s Office.
In exchange for his cooperation, Ivanov was released from criminal liability for paying bribes but received a three-year and six-month sentence for embezzling funds from the exchange’s clients.
Satyukov was arrested in absentia and placed on an international wanted list. His alleged accomplice, Sokolov reportedly died in Mexico in July 2024, according to legal representatives. Both men are believed to have fled Russia to avoid prosecution. If convicted in the trial scheduled to begin December 8, their seized assets could be transferred to the Russian Treasury.
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Source: https://www.cryptopolitan.com/russia-to-confiscate-assets-wex-corruption/
