Russian national Anatoly Legkodymov, aka Anatolii Legkodymov, Gandalf, and Tolik, has pleaded guilty to operating a money-transmitting business that processed approximately $700 million in illicit funds.

Anatoly Legkodymov, the co-founder and majority owner of the Hong Kong-registered virtual currency exchange Bitzlato, was arrested in Miami earlier this year.

The US authorities said that Bitzlato advertised its lack of ID requirements for users and processed more than $700 million over the years acquired through illegal activities, including millions in ransomware proceeds.

Bitzlato was dismantled in January 2023 as part of a police effort involving law enforcement from France, the US, Belgium, Cyprus, Portugal, Spain and the Netherlands.

The authorities seized the digital infrastructure of the service, based in France, and arrested five key members of the platform’s management, including a main administrator and CEO.

Batzlato’s largest counterparty in cryptocurrency transactions was Hydra Market, a Russian dark web marketplace that sold narcotics, stolen financial information, fraudulent identification documents, and other illicit goods. Hydra was shut down in 2022 as a result of a joint international operation led by German and US law enforcement authorities.

Legkodymov now faces a maximum penalty of five years in prison. As part of his plea agreement, he agreed to dissolve Bitzlato and to release any claim over approximately $23 million in seized assets of Bitzlato.

The news comes a week after another Russian man, Vladimir Dunaev, pleaded guilty to his involvement in developing and deploying the Trickbot malware.