The founder of cryptocurrency exchange Bitzlato was arrested and charged with processing $700 million in illicit funds, part of the Justice Department's efforts to take down a "money laundering engine" which it says "fueled a high-tech axis of cryptocrime."

Anatoly Legkodymov was arrested in Miami on Tuesday night for allegedly operating a money transmitting business that did not meet anti-money laundering requirements and moved illicit funds. The 40-year-old Russian national, who lives in China, will be arraigned in the U.S. District Court for the Southern District of Florida on Wednesday afternoon.

Officials said Bitzlato worked with the Hydra Market, an anonymous online marketplace for narcotics, stolen financial information, fraudulent identification documents and money laundering services. The DOJ claims Hydra users exchanged more than $700 mllion in crypto with Bitzlato until it was shut down last year.