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US Department of Justice charged $700 million to less known Bitzlato crypto exchange

bitzlato crypto exchange charged with $700 by doj

US authorities have ceased Bitzlato assets and have arrested the co-founder for committing crypto crimes.

The US Department of Justice (DOJ) slapped Anatoly Legkodymov $700 million fine for breaking laws and involving in money laundering activities using cryptocurrency. The accused is the co-founder of Bitzlato crypto exchange.

Mr. Legkodymov is a Russian national living in China who was arrested in Miami. The exchange has processed over $700 million in illicit funds since its inception.

Addressing the issue in a press conference, Attorney Breon Peace said “Institutions that trade in cryptocurrency are not above the law and their owners are not beyond our reach”.

He further added to his statement by saying the culprit reaped hundreds of millions of dollars worth of deposits by laundering illegal funds and is now paying the price for the crimes committed by him using cryptocurrency.

Bitzlato is a HongKong based crypto exchange launched in 2018 that has processed around $4.5 billion worth of crypto transactions. The exchange does not follow any standard procedures to verify the identity of the users, making it a safe haven for criminals.

The exchange was also closely associated with Hydra market which was an epicentre for criminal activities like drugs, money laundering and trading financial information. It was shut down last year by international authorities.

In response to U.S. Authorities, Bitzlato stated that it did not accept US customers but prosecutors said it in fact did “substantial” business with Americans.

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