Crypto firm Bitzlato is in trouble as the US authorities are enforcing action against them. The founder of the company Anatoly Legkodymov will also be arrested, announced the US Department of Justice. It is alleged that the firm helped in laundering $700 million in illicit funds.
Bitzlato is in trouble
US Deputy Attorney General Lisa Monaco recently said that actions were being taken against Bitzlato because they have been labeled the primary party connected to money laundering. The action is being taken in coordination with France, and the company’s website has already been seized. Lisa Monaco also said that the US DoJ is working with their Treasury department and authorities from France to take strict action against the company.
This was because Bitzlato was “conducting a money-transmitting business that transported and transmitted illicit funds and that failed to meet U.S. regulatory safeguards.” The company’s founder has also been arrested and is soon set to appear before the US court in Florida. There are also allegations from authorities that the crypto firm had a role in being part of the darknet marketplace called Hydra.
A coordinated effort between Europe and the U.S. resulted in the seizure of many of Bitzlato’s assets, including its servers. The authorities described it as the most significant action against an exchange since the National Cryptocurrency Enforcement Team was formed in October 2021.
Bitzlato claimed to be hacked
The administrators of Bitzlato announced on Telegram that the platform had been hacked. They informed users that withdrawals had been halted indefinitely and requested that they refrain from depositing any coins until the problem was resolved.
The exchange stated that the platform was compromised, resulting in the theft of some of the funds. They didn’t disclose the exact amount that was taken. In a separate message, they attempted to reassure customers that their assets were safe, saying they are guaranteeing a refund for all affected users.
About Bitzlato
Bitzlato, which began operating in 2016 under Changebot, is a cryptocurrency exchange offering peer-to-peer trading services. It supports trading pairs of the Russian ruble with various digital coins such as BTC, ETH, USDT, and more, which can be purchased and sold through multiple payment options.
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