US releases Russian cybercrime suspect Alexander Vinnik in prisoner exchange

Moscow — The US will release Russian Alexander Vinnik, a suspected cybercrime kingpin, as part of an exchange with Russia that freed US teacher Marc Fogel, reports said on Wednesday.

Vinnik operated BTC-e, once one of the world's largest cryptocurrency exchanges. He was arrested in 2017 and detained at Washington’s request on suspicion of laundering $4bn through the exchange.

In May, he pleaded guilty to conspiracy to commit money laundering and faced 20 years in prison, the New York Times reported. 

Saudi Crown Prince Mohammed bin Salman and Russia’s sovereign wealth fund chief Kirill Dmitriev were involved in negotiations over the release of Fogel from a Russian prison, a source close to the negotiations said on condition of anonymity.

The Kremlin could not be reached for immediate comment. The Saudi embassy in Moscow did not immediately reply to a request for comment. Saudi Crown Prince helped to negotiate anther prisoner swap in August 2024.

US President Donald Trump’s Middle East envoy, Steve Witkoff, took Fogel back to the US from Moscow on Tuesday and Vinnik was due to be sent to Russia shortly.

The deal was the first that Russia has struck with Trump’s new administration since he returned to the White House on January 20 for a second nonconsecutive term. Trump said it “could be a big important part” of ending the three-year-old Ukraine war.

The rouble rose by almost 3% against the dollar on Wednesday on optimism that the deal could help build trust with Washington.

However, Kremlin spokesperson Dmitry Peskov played down Trump’s suggestion that the deal could make a big contribution towards ending the Russia-Ukraine war. Peskov said any agreement on releasing prisoners was the result of “very, very meticulous negotiating work”.

He added: “Of course, such agreements are hardly capable of becoming a breakthrough moment, but at the same time, bit by bit, these are steps to build mutual trust, which is now at its lowest point.”

Fogel, 63, was serving a 14-year sentence for drug smuggling after being caught at a Moscow airport with a small amount of marijuana. He was flown on Tuesday to Washington, where he celebrated his release with Trump at the White House.

Meeting? 

Trump and Russian President Vladimir Putin have both said they were keen to meet to discuss Trump’s ideas for bringing a swift conclusion to the war, but no date for a summit has been announced.

US national security adviser Mike Waltz said Fogel was freed in a negotiated 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”.

Trump said earlier: “We were treated very nicely by Russia. Actually, I hope that’s the beginning of a relationship where we can end that (Ukraine) war and millions of people can stop being killed.”

The Washington Post said that according to Fox News broadcaster Sean Hannity, Witkoff, a real estate developer and veteran Trump ally, met Putin for three-and-a-half hours on Tuesday. Peskov declined to comment.

Asked what the US gave up in exchange for Fogel, Trump said earlier: “Not much”. He called the release a show of good faith from the Russians.

At 9.10am GMT, the rouble was at 93.70/$, the highest level for the Russian currency since October 4 2024, according to data from the over-the-counter market.

The rouble is up about 15% against the US dollar so far this year. It strengthened 1.8% to 12.68 against China’s yuan, the most traded foreign currency in Russia, on the Moscow Stock Exchange.

“The positive news background, promising a reduction in geopolitical tensions, continues to strengthen, and this factor is currently playing a big role in supporting the rouble,” said Denis Popov from PSB bank.

Reuters