Crypto giant Binance processed almost $346 million in bitcoin for Bitzlato. The founder was arrested by U.S. authorities However, the arrest occurred last week on allegations of running a “money laundering engine,” blockchain data showed.
Following more repeats, Binance moved $346 million for seized crypto exchange Bitzlatot was reported on Jan 18. It was said that the Justice Department had charged Bitzlato’s co-found and majority shareholder Anatoly exchange Legkodymov. The nationality of Legkodymov was early on discovered to be from Russia but currently living in China.
Listening to other views from different audiences, it was said that the guy was also operating an unlicensed money exchange business. The money exchange fueled a high-tech axis of crypto crime” by processing $700 million in illicit funds.
Bitcoin received by Binance, the world’s largest crypto exchange, was among Bitzlato’s top three counterparties. This was between May 2018 and September 2022. The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) reported last week.
According to FinCEN, of Bitzlato’s top counterparties, only Binance was a significant cryptocurrency exchange. It said that in addition to Bitzlato, additional darknet marketplaces for narcotics in Russia included Hydra, LocalBitcoins, a tiny exchange, and Finiko.
FinCEN is referred to as “an alleged crypto Ponzi scheme centered in Russia.” The extent of the entities’ dealings with Bitzlato was not specified by FinCEN. In an email, a representative for Binance said that the company had “offered substantial assistance” to foreign law authorities in support of their Bitzlato investigation.
While denying to provide specifics of its interactions with Bitzlato or the nature of its collaboration with such organizations. They noted that the firm is dedicated to “operating collaboratively” with law authorities.
Word of note to investors
Investors are advised to remain patient and calm. They should also not forget to follow up on the lasted news and see what the way forward is.
